Pvt mutuals corner chunk of inflows

AUM of MFs up to Rs 1.4 lakh crore on Dec 31, 2003

Assets under management (AUM) of mutual funds (MFs) have gone up to Rs 1.4 lakh crore as on December 31, 2003, aided by healthy inflow of equities into the schemes.

The lion's share of this is, of course, cornered by the private sector funds which with assets of Rs 1.09 lakh crore have around 78 per cent of the total market share.

Net inflows into private sector schemes during the period April-December 2003 have been to the tune of Rs 43,708 crore while net inflows into the public sector schemes have been to the tune of Rs 2,608 crore. UTI Mutual Fund witnessed net inflows of only Rs 187 crore during this nine-month period.

Net accretion to the assets of mutual funds during April to December has been Rs 46,316 crore. Total gross inflows were at Rs 4.2 lakh crore while redemptions were equally high at Rs 3.76 lakh crore.

While liquid schemes saw gross inflows of Rs 259,334.22 crore during the period and debt schemes saw inflows of Rs 132,849 crore, equity schemes also saw an impressive inflow to the tune of Rs 16,738 crore.

Mutual fund industry said that most of the inflows have taken place during the last four-five months.

Equity assets with mutual funds at the end of last month were at around 18 per cent of the total assets under management of the fund industry, while inflows were a mere 4 per cent of the total gross inflows into the sector.

An idea about the inflows into this segment can be gauged from the fact that during FY04, the inflows into equity schemes were of the order of Rs 4,640 crore.

The boom in the equity markets has helped the cause of the equity oriented schemes. Net assets with equity schemes as on December 31, 2003, stood at Rs 24,831 crore.

Incidentally, gilt schemes have also seen good inflows during the period at Rs 10,540 crore. Most of it took place during the June-July, August-September period when the gilts market was on fire with a series of rate cuts.