The Indian mutual fund industry posted a growth in quarterly average assets under management (AUM) for the first time in the past four quarters. AUM rose by 4% to R6.92 lakh crore in the April-June 2012 quarter from R6.65 lakh crore in the previous quarter (excluding domestic FoFs) as per the latest numbers announced by the Association of Mutual Funds in India (Amfi).
Debt-oriented funds were key contributors to the rise. Assets of money market funds or liquid funds grew by R169 billion, ultra short term debt funds by R6,900 crore, fixed maturity plans (FMPs) by R2,900 crore and other debt-oriented funds by R5,800 crore over the past quarter. Equity funds witnessed a decline of R5,300 crore in AUM owing to weak sentiments prevailing in the asset class in the quarter gone by.
Two-thirds of the industry (29 out of 44 fund houses) registered a rise in average AUM in the latest quarter, according to Crisil Research. Birla Sun Life Mutual Fund reported the highest rise in absolute terms. Its average AUM rose by R6,100 crore or 10% to R67,200 crore in the June quarter. SBI Mutual Fund followed with its average AUM up R51 billion or 12% to R47,200 crore. Among AUM losers, Fidelity Mutual Fund reported the highest fall in absolute terms of R13 crore or 15% in its average AUM to R7,400 crore.
HDFC Mutual Fund maintained its top position by asset size at R92,600 crore in the June quarter; its assets rose by R2,700 crore or 3.1%. Reliance Mutual Fund maintained second position with assets of R80,700 crore (up 3.3% or R2,600 crore), while ICICI Prudential Mutual fund was third with R73,000 crore assets (up 6.3% or R4,300 crore). The share of the top 5 mutual funds? average assets stood at 54% in the June quarter while the share of the top 10 funds was 78%. The bottom 10 fund houses continued to occupy less than 1% of the average AUM.
