Mutual funds witness Rs 18,500-cr dip in Assets under Management
Continued volatility in Indian stock markets over the US subprime mortgage crisis all through August has led to a fall in assets of mutual funds in the country by over Rs 18,500 crore during the month.
The total Assets under Management (AUM) of 32 fund houses have decreased to Rs 4,67,623.44 crore from Rs 4,86,129.22 crore in July, latest data from Association of Mutual Funds in India showed.
Reliance MF remains the country's largest fund house with its AUM increasing to Rs 67,597.65 crore in August as against Rs 66,420.03 crore in July.
ICICI Prudential MF is at the second rank with AUM of Rs 50,611.89 crore in August, increasing from Rs 48,688.55 crore in July. However, state-run UTI MF witnessed a dip in its AUM to Rs 41,698.56 crore in August from Rs 42,574.60 crore previous month.
Other fund houses in the top league are HDFC MF and Franklin Templeton MF with AUM of Rs 40,871.49 crore and Rs 29,992.14 crore respectively.
The BSE benchmark index Sensex had witnessed a sharp volatility during the past month on concerns related to the US subprime mortgage crisis. The index had dipped below the 14,000 mark in the month, but managed to bounce back to 15,000 level in the last two days of the month.
Analysts, believe the decline in the assets of fund house may be due to the redemptions by investors on concerns of a market meltdown and utilisation of cash pile of mutual funds for making purchases in the bearish markets.
Overall, mutual funds have made net purchases worth Rs 4,093.90 crore in August in equity markets. In sharp contrast, foreign institutional investors have been on a selling spree in the domestic markets after the global meltdown. They made net sales worth aroud Rs 7,770 crore in August.
The total Assets under Management (AUM) of 32 fund houses have decreased to Rs 4,67,623.44 crore from Rs 4,86,129.22 crore in July, latest data from Association of Mutual Funds in India showed.
Reliance MF remains the country's largest fund house with its AUM increasing to Rs 67,597.65 crore in August as against Rs 66,420.03 crore in July.
ICICI Prudential MF is at the second rank with AUM of Rs 50,611.89 crore in August, increasing from Rs 48,688.55 crore in July. However, state-run UTI MF witnessed a dip in its AUM to Rs 41,698.56 crore in August from Rs 42,574.60 crore previous month.
Other fund houses in the top league are HDFC MF and Franklin Templeton MF with AUM of Rs 40,871.49 crore and Rs 29,992.14 crore respectively.
The BSE benchmark index Sensex had witnessed a sharp volatility during the past month on concerns related to the US subprime mortgage crisis. The index had dipped below the 14,000 mark in the month, but managed to bounce back to 15,000 level in the last two days of the month.
Analysts, believe the decline in the assets of fund house may be due to the redemptions by investors on concerns of a market meltdown and utilisation of cash pile of mutual funds for making purchases in the bearish markets.
Overall, mutual funds have made net purchases worth Rs 4,093.90 crore in August in equity markets. In sharp contrast, foreign institutional investors have been on a selling spree in the domestic markets after the global meltdown. They made net sales worth aroud Rs 7,770 crore in August.
posted by Stalin at
06:18
2 Comments:
A very relevant post - give the current liquidity crisis in the US Financial Markets. Investors are suddenly turning risk averse and there is a huge selling pressure on lot of FII's in India which may lead to a minor correction in the market. The US Fed cut interest rates by half a percent which has bought some relief the liquidity crisis. However this is viewed as a short-term solution and unless the true nature of the crisis is determined, investors will need to excercise caution and expect volatility in days to come.
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