The average assets under management (AAUM) for 32 mutual funds of the total 37 that make up the industry rose by 8.8 per cent in February, as compared with January-end numbers. This is the third consecutive month when AAUM have risen. Last month, these same 32 funds had collected Rs 4.09 lakh crore. This has now risen to Rs 4.44 lakh crore this month.
Market experts attribute this rise to net inflows in debt funds, especially short-term and medium-term bond funds. The current outlook of declining interest rates has made debt funds an attractive investment option.
The AAUM of the largest fund house in the country – Reliance Mutual Fund – shot up by 7 per cent in February to stand at Rs 81,627.08 crore. HDFC Mutual Fund witnessed a rise of 10.6 per cent, or Rs 5,443.6 crore.
ICICI Prudential Mutual Fund’s AAUM surged 12.6 per cent and stood at Rs 53,514.07 crore at the end of February. Birla Sun Life Mutual Fund registered the sharpest growth in AAUMs among the top five. Its assets rose 15.2 per cent in February to Rs 48,555.99 crore.
| ON AN UPSWING | ||
| Fund House | AUM (Rs in crore) | % chg |
| Reliance MF | 81627.08 | 7 |
| HDFC MF | 56864.39 | 10.6 |
| ICICI Prud | 53514.07 | 12.6 |
| Birla Sunlife | 48555.99 | 15.2 |
Among the smaller fund houses, Edelweiss Mutual Fund lost over 3.4 per cent of its assets. The asset management company has seen month-on-month decline in their AUM for quite some time now. Currently, its AAUM stands at Rs 30.67 crore.
Baroda Pioneer Mutual Fund saw the steepest rise in assets. Its AAUM grew from Rs 38 crore in January to Rs 864 crore at the end of February – a whopping gain of Rs 826 crore.
“The reason for this increase in assets under management would be good inflows into debt funds and liquid funds. However, due to extreme volatility in the market, people are still waiting in the wings to invest in equity funds,” A P Kurien, Chairman of AMFI, said.
UTI Mutual Fund, Religare MF, Mirae Asset and AIG are still to declare their numbers.