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The November MF Report | AmfiIndia & Advantage zyaada

The Great Indian MF Juggernaut

For those who have been following our MF stories closely, we started in July 2009 when it was INR 722000 Assets under management. Finally Economic Times has also caught on with this week’s story updating the Average assets under management to INR 800,000 Crores. It is The Great Indian MF Juggernaut no less

You’ve probably come here from a Connect.in.com or Google link for the August story..We have a monthly update and the links are all here.

We already know it is the Banks. Sitting on Idle cash without credit disbursals and still waiting for micro credit and rural distribution to kick in in volumes, all that money is sitting in their own or the other fund houses’ best performing short term money in the market. Of course prices are going to fall there with all this retail inflation (food inflation 17%, pulses 94%) but LIC has picked up its INR 50000 crores in equities like Punjab Tractors as well so there is no stopping this for a couple of years. up, up and up..all that money earning a good return, HDFC MF crossing more than INR 1 trillion in AUM..

The Final Tally

It is INR 80754639.26 Lakhs or $176 billion in domestic Indian Fund houses under management With UTI less than INR 80000 Crores or $17.4 billion but almost 10% of the total. and UTI is just no. 5. The weak launches from Mirae, Lotus and Bharti AXA haven’t helped. Ajay Srinivasan’s tenure at BSL kept it in the reckoning close behind at INR 70000 Crores or $15.2 billion)

The Bottom 5

And these were just the #5 and #6. Among the often seen but never heard are AIG MF with INR 2000 Crores($435 million) , Deutsche MF with INR 15000 Crores ($3260 million) and Fortis MF at INR 9099 Crores. HSBC is continuing to keep a lid on scheme launches as Mihir alo floundes in performance. It manages a mere INR 7500 Crores ($1.635 billion)

The middle

The often visible and consonant with FII sponsorship of India, DSP Blackrock is just less than INR 20000 Crores in Ave AUM or $4.3 billion) and even Mobius’s Templeton funds are only INR 30000 Crores ($6.5 billion). A Kotak MF, despite all its corporate governance challenges and lead in all the wrong ones, gets to manage a fat INR 41000 Crores ($9 billion)

At the top..

As we told you last time, HDFC MF is zooming up continuing its market friendly overtures that started with a purchase of Zurich Mutual Fund in 1999/00 and in ten years has come to INR 10239995.18 Lakhs as per the latest AMFI India report

Reliance continues its early giant size bites from Reliance Vision and Reliance Growth schemes to catch a massive INR 12225242.71 Lakhs (>15% of market share) for close to $27 billion in Assets under Management in November 2009

Predicting this rally

OUR SENSEX PREDICTION is a bullish 28000 somewhere in April 2011 and we are quite concerned that this is not happening in 2010 itself, largely because even as the economy’s growth rate gets nearer 10% , inflation and unemployment may create a few bumps and the market analysts from broking houses and FDI brokers (MNC bank houses) think it should be a seamless linkage with other markets.. 🙂

Given that MF assets could even go 25% higher than here but the weight of Equities in the mix may go up at the expense of Income Funds which are nearly 50% of all Assets under Management ( verify it at AMFI yourself every month ) The newly introduced Online trading platform with NSE is likely to be popular but bigger money from banks and larger retail distributors unlikely to come on board without their own special provisoes and safeguards

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