Average AUM OF MF Declines by 2.86% in March 2011

Average assets under management (AAUM) of the mutual fund (MF) industry declined by 2.86% or by Rs 19345.26 crore to Rs 6.56 lakh crore during the fourth quarter of the Financial Year (FY) 2011 compared with the third quarter of the same FY.

The fall has been attributed due the decline in the equity market during the month of January and February 2011. On the other hand there had been some redemption from the debt schemes by the corporate and banks to meet their financial year end commitments during the month of March. However, the weak equity markets resulted investors to buy equity funds at cheap NAV, leading inflows into equity funds. The tight liquidity condition pushed the short term terms, which was utilized by the mutual fund industry to come out with more fixed maturity plans and high inflows were witnessed from this segment in the last couple of months.

Among the top five fund houses based on AAUM, Reliance and HDFC Mutual Fund faced marginal decline, while ICICI Prudential, UTI and Birla Sun Life Mutual Fund witnessed rise.

Reliance Mutual Fund, the largest fund house in India, saw a decline of Rs 489.60 crore or by 0.48% to Rs 1.01 lakh crore. HDFC Mutual Fund - the second largest fund saw a fall of Rs 1600.85 crore or by 1.82% to Rs 86282.24 crore.

Average assets of ICICI Prudential Mutual Fund surged by Rs 7625.23 crore (by 11.58%) to Rs 73466.11 crore, Birla Sun Life Mutual Fund surged by Rs 6006.73 crore (10.41%) to Rs 63696.20 crore and UTI Mutual Fund climbed by Rs 1801.59 crore (2.76%) to Rs 67188.83 crore.

Fund houses such as Peerless, IDBI and Axis Mutual Fund witnessed highest surge in AAUM by 82.26%, 71.80% and 65.60% respectively.

Source: http://www.adityabirlamoney.com/news/467045/10/22,24/Mutual-Funds-Reports/AAUM-OF-MF-Declines-by-2-86-in-March-2011-