Amidst a volatile financial market and weak investment sentiment,the average quarterly assets under management (AUM) for the mutual fund industry hit a 11-quarter low of Rs 6,70,963 crore for the quarter ended March 2012. The industry saw its AUM fall by Rs 32,716 crore or 4.6 per cent from Rs 7,03,679 crore in the same period last year.
This is the lowest quarterly AUM since April-June 2009,when the average AUM for the quarter stood at Rs 6,18,848 crore.
While the industry has lost in excess of Rs 32,000 crore over the same period last year,it lost 2.4 per cent or Rs 16,675 crore of AUM over that in the quarter ended December 2011.
The environment has been challenging in the equity market and mutual fund is only a part of the financial industry. It is reflecting the volatility in the index over the last two years, said Milind Barve,MD,HDFC Mutual Fund.
In this challenging period,among the top five players,only HDFC Mutual Fund witnessed a jump in its AUM and all the other four witnessed a fall in the quarter ended March 2012 over their AUMs for the quarter ended March 2011.
For us the retail focus has helped and we now have around 65-70 per cent of our portfolio from retail investors and that has low volatility, said Barve.
Reliance Mutual Fund emerged as the biggest loser and on a year-on-year basis,its AUM fell by Rs 21,485 crore from an AUM of Rs 1,01,717 crore at the end of the quarter ended March 2011 to Rs 80,232 crore in the last quarter.
UTI Mutual Fund,without a chairman since UK Sinha moved to Sebi in February 2011,has been the second biggest loser in absolute terms as its AUM is down by Rs 8,266 crore at Rs 58,922 crore over that in March 2011.
Deutsche Mutual Fund has emerged as the biggest gainer in terms of AUM in the last one year. The fund house has witnessed its AUM jump by 3,958 crore from Rs 8,186 crore in March 2011 to Rs 12,144 crore in the quarter ended March 2012.
IDFC has been the second major gainer in absolute terms. Its AUM rose by Rs 3,912 crore over the last one year to hit Rs 25,763 crore.
HDFC Mutual Fund witnessed a jump of Rs 3,803 crore in its AUM. The fund continues to remain on top with an AUM of Rs 90,085 crore after it overtook Reliance MF in terms of AUM in the quarter ended December 2011. ICICI Prudential MF held on to the third position followed by Birla Sunlife and UTI Mutual Fund.