LIC Nomura eyes Rs 10,000 cr AUM in FY'14

MUMBAI: Despite volatility being witnessed in the bond and equity markets in recent months, LIC Nomura Mutual Fund is confident of achieving Rs 10,000 crore of assets under management (AUM) this fiscal on the back of sound performance in its debt schemes.

"We are confident of achieving Rs 10,000 crore of AUM this fiscal on the back of sound performance of our debt schemes," Chief Executive Officer of LIC Nomura Mutual Fund, Nilesh Sathe, told PTI here.

He also said outflows from the equity schemes of the company were not significant.

The fund house, which has an AUM of Rs 6819 crore by the end of JUne quarter, has touched Rs 8,000 crore of assets as of now, Sathe said.

As per the data released by Association of Mutual Funds in India ( AMFI), total AUM of mutual fund industry declined by over six per cent to fall below Rs 8 lakh crore to touch Rs 7.61 lakh crore in July on the back of heavy redemption pressure from liquid funds.

Total assets under liquid funds dipped by 21 per cent to Rs 1.29 lakh crore, primarily due to outflows of Rs 45,300 crore post the liquidity tightening measures announced by the Reserve Bank.

Similarly, equity fund's AUM fell by 4.4 per cent to Rs 1.63 lakh crore in July led by outflows as well as mark to market losses.

However, the top official of LIC Nomura Mutual Fund said the fund house is witnessing a growth of 15-20 per cent in its assets in the recent time.

"While industry is facing some kind of de-growth, we are witnessing 15-20 per cent growth. All our debt fund schemes are performing well and we are getting clients back who had earlier left," Sathe said.

LIC Nomura Mutual Fund is the tie up between insurance major, LIC and Japan based Nomura with LIC holding 65 percent stake in the joint venture.