MUMBAI, JAN 1: Even though mobilisation through new issues has fallen steeply, mutual funds have recorded a 50 per cent growth in sales in the second quarter - July-September - of the year 1998-99 with mobilisation aggregating Rs 6,093 crore during the period. The total sales during the same period in the previous year was Rs 4,075 crore.Out of total sales of Rs 6,093 crore, the Unit Trust of India (UTI) accounted for a lion's share of 70 per cent of the total mobilisation at Rs 4,310 crore. Private sector funds mobilised Rs 1,631 crore and the public sector Rs 152 crore.There were 1,350 initial public offerings (IPOs) in 1995-96. As per Prime Database, these are now down to a meagre 11 in the first seven months of the 1998-99.According to the Association of Mutual Funds in India (Amfi), existing schemes accounted for Rs 4,602 crore and six new schemes for Rs 1,491 crore. Redemptions, however, were up by 86 per cent to Rs 5,124 crore. During the quarter, of the amount mobilised by UTI of Rs 4,310crore, Rs 2,949 crore came from existing schemes and Rs 1,361 crore from two new schemes, while its redemptions totalled at Rs 3,220 crore.Six new schemes, two open-ended growth schemes, two close-ended income schemes and two assured return income schemes were collectively launched by all mutual funds of which three schemes were launched by private sector mutual funds, two by UTI and one scheme by public sector mutual fund.The two assured return income schemes collected a huge Rs 1,361 crore with Rs 114 crore flowing into the two close-ended income schemes and Rs 16 crore into the two open-ended schemes growth schemes. The total assets under management of 31 mutual funds as on September 30, 1998 amount to Rs 67,862 crore.The mutual fund industry in the said quarter had 75 open-ended schemes with total sales of Rs 4,618 crore, had a total of 133 close-ended schemes with sales of Rs 114 crore and 50 assured return schemes with total sales of Rs 1,361 crore. The government had recently allowed mutualfunds to float open-ended equity-linked saving schemes (ELSS). This, however, is subject to the condition that a mutual fund will be permitted one open-ended fund under the ELSS category. With the announcement to make ELSS open-end, the government has met a long-standing demand of the fund industry.The investor will now have the option to join any open-end ELSS at a time of his choice and convenience. AMCs had to launch a new closed-end ELSS every year to provide tax-breaks to investors. The existing species of ELSS has a duration of 10 years with repurchase facility after three years. Under the open-end avatar, the three-year lock-in under ELSS will continue and commence from the date of allotment or holding of units as the case may be.
