Mutual Funds see steep fall in AUM in September
If August 2008 had brought some respite to the bleeding assets under management (AUM) of the mutual fund industry, the month of September has reversed the trend again.
By Bakul Chugan, ET Bureau |
If August 2008 had brought some respite to the bleeding assets under management (AUM) of the mutual fund industry, the month of September has reversed the trend again.
While August saw 25 of the 34 fund houses declaring positive month-on-month growth in their AUMs, of the 32 fund houses ��� that have declared their AUMs for September this year��� only 12 have reported an increase in their assets. The average total industry AUM for the month, declared by the 32 AMCs, was Rs 5,13,512 crore.
HSBC and Baroda Pioneer are yet to declare their asset position for the month of September 2008. However, even when they do, it is unlikely that the industry AUM will exceed the August level of Rs 5,44,174 crore.
The ongoing global financial turmoil and its impact on markets around the world have undoubtedly had an impact on the valuations of the assets held by the mutual fund industry in India. Lacklustre inflow of fresh cash has further added to its woes. Even new schemes, launched in the recent past, have failed to attract investors, which seems to have left the industry struggling for funds.
Among the handful of fund houses that have seen their assets grow, Canara Robeco tops the chart with an average asset growth of over 22% followed by Bharti AXA, whose assets have increased by 15% since August 2008.
Taurus Asset Management Company, with an average asset growth of around 9%, is third in line. However, despite a 2.4% drop in its asset base, Reliance Asset Management Company continues to be the market leader with an asset size of Rs 86,495 crore.
HDFC AMC, which replaced ICICI Prudential as the second-largest fund house last month, saw a decline of around 3.5% in its average asset base while the AUM of the latter ��� the third-largest fund house in the country ��� dropped nearly 6.3% in September compared with August. Edelweiss Mutual Fund, the latest entrant in the list, has reported net collections of Rs 302 crore in September.
While August saw 25 of the 34 fund houses declaring positive month-on-month growth in their AUMs, of the 32 fund houses ��� that have declared their AUMs for September this year��� only 12 have reported an increase in their assets. The average total industry AUM for the month, declared by the 32 AMCs, was Rs 5,13,512 crore.
HSBC and Baroda Pioneer are yet to declare their asset position for the month of September 2008. However, even when they do, it is unlikely that the industry AUM will exceed the August level of Rs 5,44,174 crore.
The ongoing global financial turmoil and its impact on markets around the world have undoubtedly had an impact on the valuations of the assets held by the mutual fund industry in India. Lacklustre inflow of fresh cash has further added to its woes. Even new schemes, launched in the recent past, have failed to attract investors, which seems to have left the industry struggling for funds.
Among the handful of fund houses that have seen their assets grow, Canara Robeco tops the chart with an average asset growth of over 22% followed by Bharti AXA, whose assets have increased by 15% since August 2008.
Taurus Asset Management Company, with an average asset growth of around 9%, is third in line. However, despite a 2.4% drop in its asset base, Reliance Asset Management Company continues to be the market leader with an asset size of Rs 86,495 crore.
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HDFC AMC, which replaced ICICI Prudential as the second-largest fund house last month, saw a decline of around 3.5% in its average asset base while the AUM of the latter ��� the third-largest fund house in the country ��� dropped nearly 6.3% in September compared with August. Edelweiss Mutual Fund, the latest entrant in the list, has reported net collections of Rs 302 crore in September.
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