AUM Zoom Up By 21.37%

The mutual fund industry closed July 2007 with Rs 4.86 lakh crore of assets under management (AUM). This showed an upswing of 21.37% in July 2007 compared with Rs 4.01 lakh crore managed in June 2007. AUM of fund of funds (FoFs) was Rs 2062.28 crore.
Of the 32 mutual funds, 29 registered a rise in AUM in July 2007 over June 2007 and rest showed a decline in their AUM (excluding Escorts Mutual Fund). There were 16 fund houses with AUM above Rs 10000 crore, all of these, registered net outflow in July 2007 compared with June 2007.

The top three funds witnessing a rise in the AUM included Lotus India Mutual Fund (74.01%), DBS Chola Mutual Fund (67.94%) and Deutsche Mutual Fund (52.36%). Reliance Mutual Fund continued its run as the largest fund house with Rs 66420.03 crore of AUM in July 2007 — a rise of 10.96% over June 2007. It registered net purchases of Rs 6563.02 crore in July 2007 over June 2007. This is clearly more than what ICICI Prudential Mutual Fund managed: Rs 48688.55 crore in July 2007 – a rise of 11.64% in AUM after a dip of 13.98% in June 2007. It continued to be at the second position.

AUM of UTI Mutual Fund and HDFC Mutual Fund increased by 9.01% and 12.70%, respectively, in July 2007. Occupying the third and fourth slots, AUM of UTI Mutual Fund and HDFC Mutual Fund were Rs 42547.60 crore and Rs 40153.47 crore, respectively. Both the fund houses were in the third and fourth positions in July 2007.

Birla Sun Life Mutual Fund recorded the second highest net inflow of Rs 6558.23 crore in July 2007, after Reliance Mutual Fund, which regain its top position with an inflow of Rs 6563.02 crore,

However, Benchmark Mutual Fund recorded the highest outflow of Rs. 113.69 crore in July 2007. Quantum Mutual Fund followed it with net outflow of Rs 10.75 crore.

Ample liquidity in the market, booming stock market and number of new funds offers have led to the increase in AUM.