MFs rake in Rs 15000 cr profit

31 AMCs purchased Rs 99,218 cr shares and sold Rs 84,997 cr in FY06.

Mutual funds made a profit of more than Rs 15,000 crore on sale and redemption of investments during 2005-06. Thirty-one asset management companies (AMCs) together purchased Rs 99,218 crore equity shares and sold Rs 84,997 crore shares during the year.

The entire mutual fund industry invested a net amount of Rs 14,221 crore in equity markets during the 2005-06 compared with just Rs 728 crore in 2004-05.

Data extracted from the unaudited financial results published by mutual funds for the half year ended September 2005 and March 2006 shows that a total of 31 mutual funds earned Rs 15,006 crore profit on sale and redemption of their investments.

Of these 31 mutual fund houses, five "� UTI, Franklin Templeton, HDFC, Reliance and Sahara Mutual Fund "� earned over Rs 1,000 crore each on sale of investments. The sale of investments excludes inter-scheme transfer or sale.

The spurt in stock prices in the last two years has prompted most mutual fund houses to redeem part of their investments during the year.

The Sensex appreciated 74 per cent in the last financial year, having moved from 6492.82 on March 31, 2005 to 11,279.96 on March 31, 2006.

UTI made Rs 2,747 crore profit on sale of investments, followed Franklin Templeton (Rs 1,781 crore), HDFC AMC (Rs 1,595 crore), Reliance AMC (Rs 1,271 crore) and Sahara Mutual Fund (Rs 1,191 crore).

Prudential ICICI (Rs 950 crore), Birla Sun Life (Rs 850 crore), HSBC (Rs 807 crore) and Kotak Mahindra (Rs 511 crore) are other mutual fund houses that wrapped up more than Rs 500 crore profit each on sale and redemption of investments.

Again there are AMCs that earned profits in the range of Rs 200-500 crore on sale of investments. These are Principal PNB, SBI, Fidelity, Sundaram, Morgan Stanley, ABN Amro, Tata and DSP Merrill Lynch.

Among individual schemes, Franklin India Blue-chip Growth notched up Rs 666 crore profit on sale of investments, while UTI's ULIP scheme earned Rs 567 crore, HDFC Growth Equity Fund garnered Rs 553 crore and HSBC Growth Equity Fund collected Rs 540 crore profits.