Mutual fund assets cross Rs 3 lakh crore yet again

Mid-size fund houses LIC Mutual Fund and Birla Sun Life Asset Management Company were the top gainers in terms of assets under management (AUM) with 21 per cent and 15 per cent growth, respectively.

The total AUM of mutual funds grew 6.47 per cent to cross the Rs 3 lakh crore mark yet again. The MF industry had ahchieved the landmark first in August 2006.

Total AUM gained Rs 18,849.79 crore during the month to finish at Rs 3,09,829.86 crore on October 31 from Rs 2,90,980 crore in September, data released by Association of Mutual Funds in India (Amfi) said.

Interestingly, all the top 10 funds registered gains of 5 to 20 per cent, coinciding with the bull run in the stock markets during the period. However, nine funds, including DBS Chola and Kotak Mahindra, saw an erosion in their asset values.

LIC MF saw its AUM increasing by 21.23 per cent to Rs 12,458.88 crore against Rs 10,277.04 crore reported last month, while assets of Birla Sun Life rose by 15.09 per cent to Rs 16,821.56 crore, racing past its September's figure of Rs 14,615.32 crore.

UTI AMC, which regained its numero-uno position two months ago, continued to be at the top with 8.73 per cent growth in assets to Rs 37,789.97 crore, followed by Prudential ICICI with an AUM of Rs 32,664.03 crore.

"It is difficult to predict the exact cause behind the growth in AUM value of funds. But, it is mainly the bullish stock market that has helped the mutual funds in growing their AUMs. Last month, the asset value went down by an average of 5 per cent. This month it recovered, following a robust performance of the stock market," said Dhirendra Kumar of ValueReserach, a mutual fund tracking firm.

However, with markets trading at lifetime high levels, the mutual funds have become net sellers and invested more in the debt markets. As per Sebi data, mutual funds were net sellers of Rs 3.21 crore in the equity market in October, while investing Rs 2,384.94 crore in the debt market.