The average assets under management (AUM) of the mutual fund industry for the quarter ended September 2013 declined by about R40,000 crore over the previous quarter.
The industry’s total average AUM stood at R8.14 lakh crore for the three months to September, down 4.5% from R8.52 lakh crore in the June quarter, latest data from industry body Amfi show.
Thirty-five out of a total of 44 fund houses suffered a decline in AUM. Only two out of the top 10 fund houses — Franklin Templeton MF and IDFC MF — managed to gain assets.
Franklin Templeton posted the highest gain in assets among the 44 fund houses of R1,852 crore. On the other hand, ICICI Prudential MF saw the steepest fall in assets, with its average AUM declining by R6,515 crore. Other major losers included UTI MF (R4,649 crore), Reliance MF (R4,508 crore) and Tata MF (R2,917 crore).
The top five fund houses — HDFC MF, Reliance MF, ICICI Prudential MF, Birla Sun Life MF and UTI MF — posted a decline of over R 20,000 crore in their average AUM.
The top 10 fund houses retained their rankings in terms of assets managed, with HDFC MF retaining the numero uno position with assets of R1.03 lakh crore.
Top gainers in rankings included L&T MF which jumped from 16th position to 13th. Peerless MF, Taurus MF and Indiabulls MF all lost three positions, falling to 28th, 29th and 32nd positions, respectively.
The top 10 fund houses contributed nearly 79% to the overall MF industry assets, while the bottom 15 fund houses contributed a meagre 1.4% to the overall assets.
Experts reckon both debt and equity assets would have declined in the September quarter.
While the benchmark BSE Sensex remained flat during the quarter, markets were extremely volatile, with the Sensex touching a low of 17,905 on August 21 and swinging to a high of 20,646 on September 19.
The debt market was also uncharacteristically volatile during the quarter, with returns of long-tenure bond funds suffering owing to the RBI’s sudden moves.
On July 16, returns of some income and gilt medium-&-long-term debt funds declined 3-4% following a sharp spike in yields on the back of liquidity tightening measures introduced abruptly by the RBI.
On September 20, absolute one-day returns of long-duration bond funds declined anywhere between 1.5% and 2.5% due to the surprise repo rate hike.
Gilt medium &