Drastic Fall In Its Asset Under Management Compared - Nov 06, 2008

Mutual fund industry has reported a drastic fall in its Asset Under Management (AUM) of 18.37% to Rs 4.31 lakh crore in October as compared to 5.29 lakh crore in September 2008. Sharp decline in assets of fund houses is led by fall in the stock market, huge redemptions in liquid schemes and lack of any fresh inflows. AUM of funds of funds (FoFs) was Rs 886.58 crore in October 2008. Due to the pressure from banks and corporates withdrawing money to meet their liquidity needs, the redemptions were high. In the case of most fund houses, the fall in AUM ranges from 15 to 25%. However, some have reported a more than 30% drop. All the 35 out of 37 fund houses, which reported their monthly AUMs have posted a fall in AUM.

The new entrant for the month is Religare AEGON AMC, which has filed offer document with Sebi and waiting for approval to unveil those funds. The top three funds recorded a falloff in AUM in October 2008 compared with the September 2008. Reliance Mutual fund continued to be in the first position with AUM of Rs 71093.71 crore but recorded the outflow of Rs 15400 crore in its AUM on October 2008 comparing to the month of September 2008, which witnessed highest outflow in this month. HDFC MF retains the second position, but it sheds by 12.54% in its AUM to Rs 45479.37 crore. ICICI Prudential was the next looser with outflow of Rs 10590 crore (21.28%) in AUM to Rs 39182.45 crore.