MF mobilisation rises 121

MUMBAI, JANUARY 17: Even if the primary new issue market has failed to pick up, there is one consolation: the mutual fund sector is boomin...

MUMBAI, JANUARY 17: Even if the primary new issue market has failed to pick up, there is one consolation: the mutual fund sector is booming. Mutual fund mobilisation increased by 121 per cent to Rs 33,628 crore in the first nine months April-December of the current fiscal compared to Rs 15,189 crore in the corresponding period of last year.

Out of the total mobilisation in the current fiscal, the share of Unit Trust of India UTI was 28 per cent with mobilisation of Rs 9,618 crore while the share of private sector was 66 per cent at Rs 22,088 crore. The the balance Rs 1,922 crore was with banks and FI sponspored funds.

However, of the total assets in the industry, the share of UTI was 69.26 per cent with assets of Rs 67,207 crore while private sector has assets of Rs 19,532 crore and the remaining Rs 10,289 crore with banks and FIs sponsored mutual funds.

Out of the total mobilisation of Rs 22,088 crore by private sector mutual funds, foreign funds nine raised the maximum amount of Rs 9,822 crore followed by Indian private funds having foreign joint ventures seven with Rs 8,019 crore and complete Indian funds six raised Rs 4,247 crore.

The total assets with the industry which stood at Rs 97,028 crore, of this Rs 56,827 crore was with open-ended funds, Rs 19,677 crore in close ended and Rs 20,524 crore in assured return scheme. Of the total assets with the mutual fund industry, Rs 45,073 crore was in income funds, Rs 21,625 crore in growth and Rs 23,330 crore in balanced funds.

Investors are now going for infotech funds in a big way. They have poured an estimated Rs 600 crore in the two technology funds of Kothari Pioneer and Alliance Mutual Fund in the last one month. Kothari Pioneer Information Technology Fund mopped up Rs 330 crore from over 40,000 applications between December 21 and January 12, with the fund paying a 1:1 bonus and a 60 per cent dividend.

Alliance Capital Mutual Fund, which was in the market with its sectoral series, is estimated to have mobilised Rs 350-400 crore in the three funds. The New Millennium Fund, with its focus on technology and technology dependent companies, has cornered the lion8217;s share with an estimated 75-80 per cent of the total mobilisations.

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Besides Alliance and Kothari, the technology fund from Prudential-ICICI has just hit the market while Birla IT Fund is selling units on a special offer till the end of January. The two funds are expected to rake in another Rs 350-400 crore by end of this month, taking the total mobilisation under the technology sector to over Rs 1000 crore.