Mutual Funds assets increase by Rs 40,000 cr in Jan

For the second month in a row, the assets of the mutual fund industry witnessed an increase of about Rs 40,000 crore in January amid the stock market showing signs of recovery.

The total assets under management (AUM) of the country's 35 mutual fund houses have soared to Rs 4,60,949 crore following an increase of Rs 39,833 crore, or 9.45 per cent, at the end of January, according to the data of the Association of Mutual Funds in India (AMFI).

The total AUM was Rs 4,21,000 crore in December 2008.

ICICI Prudential Mutual Fund toppled state-run UTI MF as the third largest fund house of the country with an AUM of Rs 47,515.51 crore. During January, ICICI Pru added Rs 5,638 crore to regain its lost turf after after a gap of two months.

 

"Its performance is backed by a great portfolio. With government securities (G-Secs) and occasionally commercial paper and certificate of deposit from banks, the credit quality is unquestionable," Value Research online said about ICICI Prudential MF on its website.

Reliance Mutual Fund retained its position as the country's top fund house with an AUM of Rs 76,168.48 core. The AUM rose by over Rs 5,960.38 crore from Rs 70,208 crore last month.

HDFC Mutual Fund remained the second big fund house in the country with an AUM of Rs 51,420.73 crore at the end of the month. HDFC MF added over Rs 4,663 crore to its AUM.

Meanwhile, UTI MF witnessed an over Rs 3,600 crore addition to its AUM. At the end of January, the assets of the fund house stood at Rs 46,161.40 crore.

"The gain has been mainly due to the diversion towards the debt, liquid and tax saving schemes, while the equity market has also seen a strengthening in the past month," an official of a leading asset management firm said.