AUM increases 3% in April

After a dismal March, which saw the average assets under management (AAUM) for India’s mutual funds fall, April has been much better with the AUM up around 3%. That’s despite the fact the data does not include numbers for four of the country’s top five fund houses including Reliance, HDFC, ICICI prudential and UTI. Increase in AUM figures is partly due favourable market conditions and increase in inflows into schemes.

According to the data provided by the Association of Mutual Funds in India (Amfi), the AAUM of 30 fund houses stood at over Rs 3,88,477 crore gaining 3.29% in April against Rs 3,76,099 crore in March. Currently, there are 38 mutual fund houses operating in India.

Ved Prakash Chaturvedi, MD, Tata Mutual Fund said, “With the start of new financial year, big banks and companies investors allocate money to be invested in mutual fund. In April we have seen money coming in, which was taken out in March. Also the equity markets remained upbeat in April which also helped the mutual fund industry.”

In March, fixed-income schemes saw outflows of over Rs 1.64 lakh crore while equity schemes had seen redemptions of approximately Rs 2,000 crore. Birla Sun Life Mutual Fund saw a rise in its aum of over Rs 7,165 crore to Rs 69,508 crore in April compared to Rs 62,343 crore in March.

Dhirendra Kumar, CEO of Valueresearch said, “After end of every quarter we witness money flowing into the mutual funds. However huge flows were seen only after monetary policy by the Reserve Bank of India, as some money was waiting to be invested in the mutual funds.” In the month of March huge redemptions were seen in the income as well as equity schemes as banks and corporates pulled the money out of mutual funds.

Several small size mutual funds like Taurus mutual fund, L&T Mutual fund, Peerless Mutual Fund and Baroda Pioneer Mutual Fund registered positive AAUM for April against March. On the other hand, many fund houses like Shinsei Mutual Fund, HSBC Mutual Fund, Fortis Mutual Fund and Benchmark Mutual Fund saw erosion in their monthly AAUM.

Big fund houses like Kotak Mahindra Mutual fund, LIC Mutual Fund and IDFC Mutual Fund saw dip in their AAUM, due to some redemptions pressure. In April the AAUM of Kotak Mahindra Mutual Fund stood at Rs 33,743.48 crore down by 2.70% compared to Rs 34,681.08 crore in March.

Source: http://www.financialexpress.com/news/aum-increases-3-in-april/614520/2