Average AUMs of top 5 MFs dip by 6 %

The top five mutual funds, which account for more than 35 per cent of the total assets under management (AUM), saw a decline in their average AUMs in the range of 1 to 6 per cent thanks to tightening liquidity in the Mumbai money market.

According to the monthly data released by the Association of Mutual Funds in India (AMFI), Reliance MF retained its top spot with average AUM of Rs 86,494.45 crore. HDFC MF and ICICI Prudential MF came second and third with AUMs of Rs 51,998 crore and Rs 48,772 crore, respectively. Public sector fund house UTI MF claimed the third position with Rs 44,623 crore and Birla Sun Life the fourth with Rs 37,577 crore.

 

“Liquid funds bore the brunt of tight liquidity conditions this time around,” said V Ramesh, chief executive officer, Prabhudas Lilladhar Financial Services. Fixed income fund managers point out that the tightening domestic liquidity is a result of advance tax outflows as well as forex intervention. RBI has hiked the reserves requirement or cash reserve ratio by nearly 200 basis points since April and has also hiked benchmark repo rates in order to contain money supply growth.