Chillin' out till it needs to be funded
The mutual fund industry’s total AUM grew by Rs 59,965.79 crore(USD 12.2 billion) , or 8.69 per cent, which analysts believe was mainly propelled by the inflow into the fixed income plans.
The combined average AUM of the 36 fund houses in the country hit the historic Rs 7 lakh crore-mark at the end of August at Rs 7,49,911.91 crore ($153 bilion) , according to the data released by Association of Mutual Funds in India (AMFI).
The MF industry had an AUM of Rs 6,89,946.12 crore at the end of July.
“Income funds were in demand in August. Banks and corporate houses have parked their surplus cash with the fund houses, thereby leading to an increase in the AUMs,” Taurus Mutual Fund Managing Director RK Gupta said.
HDFC MF registered the biggest jump of Rs 10,508.09 crore in its average AUM during the period, taking its total assets to Rs 93,874.19 crore at end of August.
The country’s largest fund house Reliance MF saw an addition of Rs 8,979.40 crore during the month to its assets. At the end of August the average AUM of Reliance MF stood at Rs 1,17,313.78 crore.
ICICI Prudential, the third largest fund house, saw its assets rise by Rs 4,638.30 crore to Rs 77,966.86 crore. While, UTI MF’s assets grew by Rs 6,674 crore to Rs 73,925.90 crore at the end of August.
Also according to a McKinsey report bank promoted funds (12/37) may steal the thunder with their captive distribution systems, while advance tax and lack of surplus cash with banks from this month to transfer ( see earlier post) to debt funds implies drops in AUM ( 7.5 trillion is now approx 15% of India’s GDP)
The Top 5 ( making 50% of AUM) remained Reliance Capital AM with INR 1.17 trillion or $24 billion, HDFC AMC $19.16 billion and ICICI Pru and UTI AMC with $15 billion each.