MFs assets fall 19pc; Rel MF sees 15 pc decline

NEW DELHI: Fund houses recorded a sharp decline in their AUM last month -- with over 36 percent plunge for some companies - as investors withdrawal appears to have offset the gains registered by an upward move in the stock market.

The largest fund house Reliance MF witnessed a drop of 15 percent in its asset under management (AUM), while the loss appears to be largest for JM Financial and Axis MF at over 36 percent.

The data of the 35 fund houses who have reported their figures show that their cumulative stand at over Rs 6.53 lakh crore, drop of rs 1.50 lakh crore or 19 percent over the previous month.

At the end of June, the AUM of Reliance MF dropped by nearly Rs 18,000 crore to Rs 1.01 lakh crore, as per data provided by industry body AMFI.

The AUM of second largest fund house HDFC MF declined 15 percent or over Rs 15,000 crore to Rs 86,648 crore. Besides, ICICI Prudential MF saw its average assets plunging by 16 percent to Rs 73,800 crore.

There have been large scale withdrawals from the MFs in the recent months, which perhaps is leading to the decline in AUM despite an upward move in the stock market. In June itself the Sensex rose by 4 percent.

Only a few fund houses, including Mirae Asset MF and Peerless MF, witnessed an increase in their AUM during the month.

The data was not available for all the 37 fund houses who will provide their figures in next few days. Those who saw a decline in their AUMs also include Fortis MF (32 percent), UTI MF (18 percent), Taurus MF (20 percent) and Canara Robeco (20 percent).