AUMs end declining streak, up 4% in Dec
Assets under management (AUMs) of Indian mutual funds broke a three-month declining streak, posting a modest rise of 4% to Rs 418,336 crore in December 2008, as per AMFI data.
By Bakul Chugan, ET Bureau |
ET Intelligence Group: Assets under management (AUMs) of Indian mutual funds broke a three-month declining streak, posting a modest rise of 4% to Rs 418,336 crore in December 2008, as per AMFI data. While the break-up is not available, fund managers said the recovery in AUMs was led by income funds.
���Income funds typically tend to do well in a falling interest rate scenario,��� said, Birla Asset Management CIO A Balasubramanian. His fund house���s debt assets have grown 15% during the month, with healthy inflows recorded in income, short-term debt and gilt funds.
UTI Asset Management CMO Jaideep Bhattacharya also attributed the growth in AUMs to corporate and bank money flowing into income funds; though he did point out that banks may have withdrawn much of it by the end of December 2008.
Inflows into equity schemes remains weak, with most investors preferring systematic investment plans to lump-sump investments, he said.
He added that the craze for fixed maturity plans has subsided. ���Though there are a few takers for long-term FMPs, corporates continue to use these to park their short-term money,��� he said.
Seventeen out of 34 fund houses have reported a positive growth in their assets. Reliance Asset Management, with an asset base of over Rs 70,000 crore, retains the top slot followed by HDFC and UTI.
Interestingly, LIC Mutual Fund witnessed the maximum growth in asset base in relative terms (+23%), and has made it to the top 10 list at number 9 position, replacing Kotak Mahindra Mutual Fund, which has slipped to number 10.
���Income funds typically tend to do well in a falling interest rate scenario,��� said, Birla Asset Management CIO A Balasubramanian. His fund house���s debt assets have grown 15% during the month, with healthy inflows recorded in income, short-term debt and gilt funds.
UTI Asset Management CMO Jaideep Bhattacharya also attributed the growth in AUMs to corporate and bank money flowing into income funds; though he did point out that banks may have withdrawn much of it by the end of December 2008.
Inflows into equity schemes remains weak, with most investors preferring systematic investment plans to lump-sump investments, he said.
He added that the craze for fixed maturity plans has subsided. ���Though there are a few takers for long-term FMPs, corporates continue to use these to park their short-term money,��� he said.
Seventeen out of 34 fund houses have reported a positive growth in their assets. Reliance Asset Management, with an asset base of over Rs 70,000 crore, retains the top slot followed by HDFC and UTI.
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Interestingly, LIC Mutual Fund witnessed the maximum growth in asset base in relative terms (+23%), and has made it to the top 10 list at number 9 position, replacing Kotak Mahindra Mutual Fund, which has slipped to number 10.
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