Top 5 MFs' assets fall 4 per cent in Jan: Amfi

On the back of less deployment of funds by banks in mutual fund (MF) schemes and amid volatile equity markets, the average asset under management (AAUM) of top five fund houses fell over 4 per cent in January over the December figure.

Out of the 37 fund houses, 36 have declared their AAUM. Of these, 23 reported a fall in assets whereas only 13 saw a rise, according to the Association of Mutual Funds in India (Amfi) data released today.

The AAUM of the top five fund houses — Reliance, HDFC, ICICI, UTI and Birla Sun Life — squeezed to Rs 4,27,522.93 crore in January from Rs 4,45,847.48 crore in December.

Source: http://www.business-standard.com/india/storypage.php?autono=384377

Distributors Not Hot About NFOs

If you have been reading newspaper reports you would well aware that asset management companies (AMCs) have been hit by the ban on entry loads. Distributors are not selling aggressively and fund sales have taken a beating. But in no way has that come in the way of AMCs launching new fund offerings (NFOs).

The entry load ban came into effect on August 1, 2009. Ever since then, there have been 24 equity fund offers filed with the market regulator, the Securities and Exchange Board of India (SEBI). Looking at the period prior comparatively, the five months spanning March to July 2009 had 27 NFOs filed. Of the NFOs launched since the entry load ban, the public sector theme has caught the fancy of two fund houses with them launching focussed thematic offerings: Religare PSU Equity and Sundaram BNP Paribas PSU Opportunities. Funds with an international flavour have also caught on with DSPBR World Mining Fund and Mirae Asset China Advantage Fund.

Despite their enthusiasm to launch new schemes with the market being revived, the AMCs don’t have it easy. The lack of entry load has not got over-eager distributors pushing the schemes. The total NFO amount raised post the entry load ban has been just around Rs 268.64 crore. But in the March to July period it was a much weightier Rs 4,056.64 crore. Part of the reason could be investors not wanting to burn their fingers after the market carnage of 2008, while a large part could very well be distributors not eager to push fund products enthusiastically.


Source: http://new.valueresearchonline.com/story/h2_storyView.asp?str=101216