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Mutual funds in India lose 10% AUM in 2010-11

Monday, April 11, 2011

The industry manages positive growth for the last quarter
 
The report card of Indian mutual fund is out for the financial year 2010-11 and it is negative. The economy, otherwise boasting high performance and overall growth from all sectors has sluggish growth in its capital markets as the overall investment in the mutual funds show a downward trend. The Assets Under Management (AUM), a total of investments being managed by all mutual fund companies in the country are down by 10%.
Among more than 40 Asset Management Companies (AMCs), leading five fund houses are also into the negative territory by 7%. According to Association of Mutual Funds in India (AMFI), the average AUM for the year dropped at about Rs. 6,59,000 crore from about Rs. 7,47,000 crore as against last year.
 
One of the main reasons for the drop in AUM could be outflows from the ultra-short-term funds after the mark-to-market norms were introduced in the middle of the last financial year as it comprise of 40% of the total assets. 
 
Decline in assets of top fund houses in 2010-11
 
Fund House
Assets as on
31-Mar
Change
 Y-o-Y (%)
Change Q3 (%)
(Jan-March ’11)
Reliance MF
1,01,576.60
-8.00
-0.48
HDFC MF
86,282.24
-2.81
-1.82
ICICI MF
73,466.10
-9.29
11.58
Birla Sun Life MF
63,696.19
-2.17
10.41
UTI MF
67,188.82
-16.24
2.76
* AAUM of SBI MF not declared                             All figures in Rs crore
Source : Association of Mutual Funds in India (Amfi)
 
 
More than 50% of AMCs have reported decline in their assets. UTI MF was hit hardest among top five AMCs with its assets plunging over 16%. It is noteworthy that the above mentioned five top AMCs contribute 70% of the assets.
 
When this macro picture of AMCs portrays a sorry picture, the good news is that the numbers for last quarter of 2010-11 (January – March 2011) show an encouraging image with the AAUM rising by 3.21% compared with the previous quarter of October – December 2010 at Rs 6.97 lakh crore from Rs 6.75 lakh crore. Nonetheless, four mutual funds registered a surge of over 40% in their AAUM and 10 fund houses posted growth of 10% to 30%. Only 18 AMCs showed decline in AAUM.
 
According to statistics of AMFI, AAUM of 11 fund houses have increased by over Rs 1000 crore. When all top five performing funds registered negative growth in the last financial year, three of them turned their AAUM in positive territory while two managed a substantial recovery.
 
The AMFI has agreed upon a demand of the funds houses and that is from the second half of the FY11, AUM would be declared only at the end of every quarter and every month. The move is following the demand of funds houses that the monthly AUM numbers put AMCs under pressure of competition leading into unhealthy trading practices.
 
TOP PERFORMING MF SCHEMES IN DIFFERENT SEGMENTS FOR 1 YEAR 
 
Scheme Name
Nature
1 M %
6 M %
1 Y %
3 Y %
 
Quantum Long-Term Equity
Equity
6.66
-3.31
19.47
18.68
 
ICICI Prudential SMART F
Debt
-
5.66
15.78
-
 
HDFC Balanced Fund - Gro
Balanced
7
-0.99
16.92
17.96
 
HDFC MIP - LTP - Growth
MIP
2.96
1.41
9.05
12.89
 
Escorts Liquid Plan - Gr
Liquid
0.86
4.76
7.84
7.81
 
Quantum Tax Saving Fund
ELSS
6.29
-4.15
18.04
-
 
Kotak PSU Bank ETF
ETF
8.8
-9.2
32.95
26.68
 
Religare Gilt Fund - Lon
Gilt
0.36
2.15
13.52
5.57
 
HDFC Index Fund - Sensex
Index
8.12
-3.17
12.76
12.37
 
*Note:- Returns calculated for less than 1 year are Absolute returns and returns calculated for more than 1 year are compounded annualized. NAV as on April 7, 201
 
 
 
 
 
 
MF Updates:
ICICI Prudential Mutual Fund renames its two schemes  
ICICI Prudential Mutual Fund has decided to rename ICICI Prudential Growth Plan to ICICI Prudential Top 100 Fund and ICICI Prudential Power to ICICI Prudential Top 200 Fund, with effect from 4th April 2011. ICICI Prudential Top 100 Fund has an investment objective to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities. ICICI Prudential Top 200 Fund seeks to generate capital appreciation through investments in equity and equity related securities in core sectors and associated feeder industries.
 
Birla Sun Life Mutual Fund revises exit load structure under two schemes
 Birla Sun Life Mutual Fund has decided to revise the exit load structure of Birla Sun Life International Equity Fund- Plan A and Birla Sun Life Government Securities Fund-Long Term Plan. As per the revised structure the exit load charged will be nil. The changes will be in effect from 11th April 2011. Birla Sun Life International Equity Fund-Plan A has an investment objective to generate long-term growth of capital by investing predominantly in a diversified portfolio of equity and equity related securities in the international markets. Birla Sun Life Government Securities Fund-Long Term Plan is an open ended gilt scheme with an investment objective to provide the investor current income consistent with a portfolio invested 100% in securities issued by the Government of India or the State Government.
 
Tata Mutual Fund announces dividend under its Equity P/E Fund  
Tata Mutual Fund has declared dividend under Tata Equity P/E Fund for both the options A and B. The quantum of dividend for distribution will be Rs. 1.50 and Rs. 3 per unit under option A and option B respectively. Tata Equity P/E Fund is an open ended equity fund with an investment objective to generate reasonable and regular income along with possible capital appreciation to its unit holders. The record date for dividend distribution is 13th April 2011.
 
Edelweiss Mutual Fund renames Edelweiss Income Advantage  
Edelweiss Mutual Fund has announced the revision of the name of Edelweiss Income Advantage Fund. The scheme is now to be renamed as Edelweiss Monthly Income Plan. Along with the change in the name, there will be change in the features of the fund. The scheme plans to allocate 70 to 100% of its assets in debt and money market instruments and up to 30% of its assets in equity and equity related instruments. An exit load of 1% will be chargeable if the units are redeemed within 365 days from the date of allotment. The change will be in effect from 6th May 2011.
 
NEW FUND OFFERS
 
 
 
Name
Open Date
Close Date
Category
Axis Dynamic Bond Fund (D)
06/04/2011
20/04/2011
Regular
Axis Dynamic Bond Fund (G)
06/04/2011
20/04/2011
Regular
Axis Dynamic Bond Fund (HD)
06/04/2011
20/04/2011
Regular
Axis Dynamic Bond Fund (QD)
06/04/2011
20/04/2011
Regular
Can Robeco Yield Advantage (G)
01/04/2011
15/04/2011
Regular
Can Robeco Yield Advantage (MD)
01/04/2011
15/04/2011
Regular
Can Robeco Yield Advantage (QD)
01/04/2011
15/04/2011
Regular
Sundaram CPOF- Sr 3 -3 yrs (D)
29/03/2011
11/04/2011
Regular
Sundaram CPOF- Sr 3 -3 yrs (G)
29/03/2011
11/04/2011
Regular
 

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