| Reliance Mutual Fund reported a healthy growth of Rs 16,354 crore in assets under management (AUM) in February, taking the total industry-wise AUM to Rs 5,65,459 crore.
ASSET GROWTH
A sharp rise in Fixed Maturity Plans (FMPs) and collection of Rs 7,000 crore through new fund offers (NFOs) boosted the mutual funds’ assets during last month
In AUM rankings, Reliance MF, which continued to be in the number one spot for sometime now, was followed by ICICI Prudential and UTI Mutual Fund
ICICI Prudential, which lost Rs 4,767.42 crore in assets, was the biggest loser in February | A sharp rise in Fixed Maturity Plans (FMPs) and collection of Rs 7,000 crore through new fund offers (NFOs) boosted the mutual funds’ assets during last month.
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| Reliance Mutual Fund was the biggest gainer last month, with its AUM growing by Rs 16,321.64 crore, followed by HDFC Mutual Fund (gain of Rs 2529 crore), LIC Mutual Fund (Rs 2240 crore) and SBI Mutual Fund (Rs 1912 crore). ICICI Prudential, which lost Rs 4,767.42 crore in assets, was the biggest loser in February.
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| In AUM rankings, Reliance MF, which continued to be in the number one spot for sometime now, was followed by ICICI Prudential and UTI Mutual Fund.
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| UTI Mutual Fund, the third largest AMC, lost Rs 191.48 crore last month, according to data available on the website of Association of Mutual Funds in India (AMFI).
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| Sameer Kamdar country head - mutual funds, Mata Securities India said that fixed maturity plans (FMPs) were the stars of the show, with 60 FMPs/interval funds being launched in February against 32 in January.
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| “The doubling in FMP numbers were primarily driven by a strong demand for annual or 365 days plus FMPs, which jumped to 18 from 8 launched in January 2008. Due to hardening of CP (commercial paper) rates to around 10 per cent, the quarterly FMPs also jumped to 36 from 14 previously. The FMPs were the overall prime drivers for growth in MF assets in February 2008,” he said, in a note.
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| Equity NFOs registered a strong growth in February this year, garnering Rs 7000 crore. This comes on the back of almost Rs 8400 crore collection in January 2008.
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| The cumulative NFO collection in January and February 2008 is equivalent to almost half the NFO mobilisation in calendar year 2007.
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| “This reflects a paradigm shift in the investors’ mindset. They seem to be using the broad market fall to accumulate equity funds at lower levels, thus reflecting their confidence in the long-term India growth story. One earnestly hopes that this confidence is well rewarded in the long term,” Kamdar said.
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| The month of March has traditionally been difficult for the mutual fund industry. An amount of Rs 50,000 crore plus is expected to go towards advance tax payment and there would also be a demand from banks to shore up their assets.
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| “With markets performing badly following the budget and weak global cues, they may result in net negative accretion. March may witness a large drop in MF assets, as has been the case in the past years. Be prepared to witness significant volatility this March,” said the note by Mata Securities. |
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