Mutual fund assets soar 63 per cent

The mutual fund industry saw an average growth of 63 per cent in assets under management (AUM) in 2006, doubling the average growth rate of 30 per cent recorded in the previous year. In fact, some funds have logged more than 150 per cent growth in AUM during the year.

The total AUM value of 30 fund houses stood at Rs 3,23,601.79 crore (Rs 3.23 trillion) for 2006 compared with Rs 1,98,305.90 crore (Rs 1.98 trillion) in 2005.

UTI maintained its top position for the year, while Reliance finished ahead of Prudential ICICI, grabbing the second spot. UTI was the top fund with asset value of Rs 38,108.50 crore, even though its AUM size came down by 9 per cent from Rs 41,622.52 crore in November. The fund had recorded a growth of 51 per cent in 2006. 

TOPPERS AND LAGGARDS AUM Growth in '06 in %
Deutche MF	191.00
Benchmark MF	160.00
Reliance MF	142.00
Sundaram BNP	133.00
ABN Amro	112.00
LIC MF	105.00
Sahara MF	-60.00
BoB MF :	-24.00
Canbank MF	-9.60
Escorts MF	-5.00
Source : AMFI

Reliance Mutual Fund, which registered AUM growth of 142 per cent during the year, took the second spot as its AUM of Rs 36,927.92 crore surpassed that of Prudential ICICI's Rs 33.304.57 crore.

However, the AUM fell 5 per cent in December as asset value of most funds went down by 5-10 per cent during the month. In November, the industry had marked its highest AUM of Rs 3,40,150.18 crore. Reliance MF's AUM grew 4 per cent in December, while that of Prudential ICICI dipped 3.84 per cent during the month.

"We have had a good performance during the year and would continue to grow. We think there are significant opportunities in the market, which if explored could yield a large chunk of investments," said Vikrant Gugnani, president, Reliance MF.

Besides top fund houses, other AMCs too came out with excellent results. Deutsche AMC saw its AUM swelling by 191 per cent at its asset value rose to Rs 6,414.25 crore.

Benchmark was a notable gainer, as its AUM grew 160 per cent to Rs 7,938.48 crore. The fund house witnessed huge success for its Bank BeES scheme, the which attracted huge investments from FIIs.

Sundaram BNP Paribas recorded AUM growth of 133 per cent to Rs 7,938.48 crore. LIC mutual fund joined the party as its asset size increased 105 per cent to Rs 11,599.32 per cent while, that of Kotak stood 74 per cent to Rs 12,062.05 crore.

Of the 30 fund houses, AUM of four funds contracted during the year. Ailing Sahara MF lost 60 per cent of its asset value to end the year at Rs 183.32 crore.

Bank of Baroda MF was the second top loser with 24 per cent dip in its AUM to Rs 123.09 crore. Other losers were Canbank MF (down 9.6 per cent), Escorts MF (down five per cent) and JM Financial MF (down 8.5 per cent).