Mutual funds assets fall 3 pc in Sept

NEW DELHI: The mutual fund industry witnessed nearly 3 per cent drop in its assets under management in September, led by country's top fund house Reliance MF, which lost over Rs 2,122 crore during the period.

The combined average assets under management (AUM) of the 35 fund houses in the country dropped to Rs 5,29,121.76 crore at the end of September, compared with Rs 5,44,173.96 crore in August, according to the data released by the Association of Mutual Funds in India.

Analysts believe the bearish sentiment in the market and the credit crisis in the global market have taken a toll on the assets of mutual funds, even as investors have turned their attention fixed maturity plans and liquid schemes.

Reliance MF registered the biggest drop of over Rs 2,122 crore or 2.39 per cent in its average AUM in September. However, Reliance MF continues to be the top fund house with assets valued Rs 86,494.46 crore at the end of the month.

Further, HDFC MF, which tripped ICICI Prudential MF to grab the second notch last month, retained the ranking with an AUM of Rs 51,998.28 crore, while ICICI's AUM fell 6.25 per cent to Rs 49,772.48 crore.

While HDFC MF's AUM declined from Rs 53,858.63 crore, ICICI Prudential MF's assets dropped from Rs 53,092.78 crore.

UTI MF continued its fall in the average AUM, which was Rs 44,623.18 crore at the end of September, down 5 per cent from August's figure of Rs 46,947.32 crore.

Besides, AUM of Franklin Templeton MF rose marginally to Rs 28,356 crore in September, against Rs 27,715.32 crore in the previous month.

Meanwhile, about 11 fund houses managed to increase their AUM in September which include -- ABN Amro MF, Taurus MF, Sahara MF, Deutsche MF, Benchmark among others.