Mutual Funds Witnessed Fall In Aum Meltdown - Dec 03, 2008

Mutual fund industry has reported the consecutive fall in Asset Under management (AUM) for the third month. The AUM has shed by 6.92% to Rs 4.02 lakh crore in November compared with 4.31 lakh crore in October 2008. AUM of funds of funds (FoFs) was at Rs 805.55 crore in November 2008. The fall was mainly triggered by the equity market meltdown.All the 33 out of 35 fund houses has posted a fall in AUM.

UTI and Tata mutual fund has posted a positive AUM in the month of November 2008. About 19 fund houses has posted more than 10 per cent drop in their AUM.The top three funds recorded a fall off in AUM in November 2008 compared with the month of October 2008. Reliance Mutual fund continued to be in the first position with AUM of Rs 67815.86 crore with 4.61% fall in its AUM on November 2008 comparing to the month of October 2008, which witnessed highest outflow in this month. HDFC MF retains the second position maintaining the AUM of Rs 44262 crore with 2.68% drop comparing to the month of October 2008 and ICICI Prudential has reported the fall of 5.43% to Rs 37055.68 crore.

The other top mutual funds, in term of AUM, UTI has recorded the marginal gain of 0.19% in AUM on November 2008 after facing the deep fall of 14.21% in October 2008. Birla MF also recorded the fall of 6.69% in its AUM to Rs 31900.95 crore and SBI MF sheds by 6.30% to Rs 23168.09 crore.Reliance MF recorded the highest outflow of Rs 3277 crore (4.61%) in its AUM and the Franklin Templeton followed it with outflow of Rs 2560 crore (11.64%) in November the month of October 2008. And Tata Mutual fund is the gainer in its AUM by 3.16% in November 2008.

In the category of Fund houses maintaining AUM more than Rs 10000 crore, Franklin Templeton MF has recorded the highest outflow of Rs 2560.35 crore to Rs 19443.51 crore in the month of November over October 2008. LIC has posted the fall of Rs 1502.35 crore (11.39%) to Rs 11684.30 in October and HSBC has recorded 12.81% fall to Rs 11015.04 crore. While Tata mutual fund has gained 3.16% in it AUM in November 2008 comparing to the month of October 2008 and it has posted the highest inflow in the month of November 2008.

The funds with relatively smaller corpus having AUM less than Rs 1000 crore has registered the sharp fall in AUM, Mirae Asset MF registered 69.22% fall in November which fell 56.52% on October (Rs 309.04 crore), Taurus declined by 33.97% to Rs 223.71 crore in its AUM and Edelweiss MF registered an outflow of 27.72% to Rs 164.79 crore of AUM in the month of November compared with the month of October 2008.