Mutual Fund Sectors Assets Down 4.5% In A Month

Assets under managemet as on July stands at Rs 1,03,089 crore to that of Rs 1,07,728 crore as on June 2000, according to data published by Association of Mutual Fund of India.

However, the drop seems to have been restricted with fresh inflow of Rs 5,421 crore against the redemption of Rs 3,921 crore during the month.

While the major market indicators, the Bombay Stock Exchange Sensex dipped 9.88 per cent or 469 points and Nifty SNX index 9.42 per cent or 139 points during the same period.

UTI's total assets dropped 4.96 per cent to Rs 69,204 crore, while the private sector mutual fund assets decreased 2.65 per cent to Rs 24,687 crore.

 

Among the private sector, only the joint venture-predominantly foreign managed to increase their assets to Rs 13,217 crore, up 0.33 per cent.

While on the scheme-wise break up, total assets under growth-oriented schemes was down 7.2 per cent to Rs 23,733 crore. This was despite a inflow of Rs 1,325 crore against redemption of Rs 960 crore for July 2000.

Open-ended liquid-oriented schemes saw major redemption with a outflow of Rs 1,319 crore accounting for 34 per cent of the total outflow of Rs 3,921 crore for the month. The hike in bank rate seems to have made these schemes lesser attractive to investors.

While income-oriented open-ended funds, despite an outflow of Rs 989 crore for the month, still continued to be the investors' first choice. The scheme had inflows of Rs 1,423 crore, accounting for 32 per cent of the total inflow of Rs 5,421 crore for the month.

Only one new scheme was launched during the month. The open-ended income-oriented new scheme mobilised Rs 258 crore. This has been against 11 new schemes launched during the quarter April-June 2000 that had mobilised Rs 992 crore.

BS Research Bureau