At present, liquidity is tight in the market mainly on
account of advance tax outflows and the Reserve Bank of India buying out Indian
rupees and thereby sucking out liquidity
Tough times continue for the Rs. 6.70 trillion Indian mutual
funds (MF) industry. The overall assets under management (AUM) fell by about 2.43%
between January and March. There are 44 asset management companies (AMCs) in
India, of which 41 have completed a year. Of these 41, only 12 AMCs gained
money; rest lost assets.
Reliance Capital Asset Management Co. Ltd—India’s second
largest fund house with assets over Rs. 80,232 crore—lost the most in the last
quarter. It lost close to Rs. 4,068.4 crore. Typically, money moves out of MFs
in March-end as a lot of fixed maturity plans mature. At present, liquidity is
tight in the market mainly on account of advance tax outflows and the Reserve
Bank of India buying out Indian rupees and thereby sucking out liquidity. Among
the fund houses that gained the most was India’s largest fund house, HDFC Asset
Management Co. Ltd. It gained Rs. 1,348.6 crore.
Source: http://www.livemint.com/2012/04/04200048/MF-industry-AUM-falls.html
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