MF assets grow 5% at Rs 7 lakh cr in June; Rel MF biggest gainer

NEW DELHI: The mutual fund industry witnessed five per cent increase in its average assets under management at Rs 6.70 lakh crore at the end of June, with Reliance MF alone gaining over Rs 5,000 crore.

The mutual fund industry's average assets under management (AAUM) grew by Rs 31,863.31 crore, or 5 per cent, and analysts said increased inflows propelled gains in asset.

The combined average AUM of the 35 fund houses in the country increased to Rs 6,70,993.13 crore in June, compared to Rs 6,37,609.41 crore in May, according to data released by the Association of Mutual Funds in India (AMFI).

Reliance MF maintained its top position as the largest fund house in the country with Rs 5,602.21 crore jump in its AUM to Rs 1,08,332.36 crore at June-end.

It had an AUM of Rs 1,02,730 crore at the end of May. The second-largest fund house, HDFC MF, gained Rs 2,792 crore with its AUM at Rs 78,197.90 crore.

"There is no big reason as such for the slow growth in AUM in June and the increase can be attributed mainly to inflows in fixed income schemes, while they have been nominal in equity schemes," Mutual Fund tracking firm Value Research CEO Dhirendra Kumar said.

ICICI Prudential and state-run UTI MF added Rs 4,619.61 crore and Rs 4,540.32 crore, respectively, to their assets last month.

ICICI Prudential's AUM stood at Rs 70,169.46 crore at the end of May, while UTI MF had assets worth Rs 67,978.19 crore.

Further, LIC Mutual Fund saw an increase of Rs 3,816 crore in its AUM at Rs 32,415 crore last month.

The fund houses had seen the combined AUM hitting the record Rs 6-lakh crore mark at the end of May. "In May, the gain in equity markets had been extraordinary so the jump in AUM was also huge," Kumar said.

At the end of June, other fund houses which saw an increase in their average AUM in May include IDFC MF, DSP BlackRock, Deutsche MF and Kotak Mahindra MF.

However, fund houses whose AUMs declined on a month-on-month basis include Canara Robeco MF, Birla Sun Life MF, Bharti AXA, HSBC MF, ING MF, Taurus MF.

The BSE benchmark index Sensex saw a marginal 0.90 per cent drop in June and had settled at 14,493.84 points.