Mutual funds industry is upbeat despite the slump, launches slew of funds

The Indian Mutual Fund (MF) Industry may not be in the best of spirits these days, especially given the decline witnessed in the overall assets managed by this industry. The average assets under management (AAUM) for the MF industry have shrunk by 16.5% from Rs 7.03 lakh crore in Mar '11 to Rs 5.87 lakh crore in Mar '12.

For the MF industry, however, this loss of investor confidence is only a temporary phenomenon and it expects to win over its lost investors gradually, with the recovery in the Indian economy and equity markets.

It is in fact this very confidence that is prompting the MF industry to launch new schemes notwithstanding the fact that even the existing and well-established schemes today are finding it difficult to sell.

As many as five equity schemes have been launched in the current financial year (Apr - Jun '12) so far, nearly double the number of equity schemes launched by the industry in the corresponding period of the previous year.

These include - IDBI India Top 100 Equity, Taurus Banking & Financial Services, IIFL Dividend Opportunities Index Fund, ICICI Prudential US- Dedicated Fund and Axis Focused 25 Fund. Off these, the latter three have been launched in the current month of June '12 alone.