As the rupee and the stock markets continued with their volatility and the short-term interest rates remained volatile during the period between July and September, the Indian mutual fund industry witnessed investors pulling out their funds from the market. All major asset management companies (AMCs) witnessing a decline in their average assets under management (AUM) for the quarter ended September as against that in June.
The average AUM for the industry slipped by 4.5 per cent in the September quarter to Rs 8,14,026 crore from Rs 8,52,662 crore in the quarter ended June. A sharp dip came in the month of July when the AUM for the industry slipped from Rs 811,481 crore as on June 30 to Rs 760,833 crore in July 2013 on the back of a strong redemption from debt schemes following RBI’s measures to tighten liquidity and raising the short term rates.
In the quarter ended September 2013 only 9 AMCs witnessed a rise in their average quarterly AUM and the names include — BOI AXA, LIC Nomura, HSBC and L&T, while 34 AMCs saw a decline in the AUM. The top five AMCs — HDFC, Reliance, ICICI Prudential, Birla Sunlife and UTI — lost an aggregate of Rs 20,074 crore in their average AUM over the last quarter. Among the top 5 players, ICICI Prudential was the biggest loser as its AUM declined by 7.1 per cent or by Rs 6,516 crore over that in June 2013. UTI Mutual Fund lost 6.2 per cent or Rs 4,649 crore during the quarter and its AUM stood at Rs 70,056 crore.
Among the top 10 players by average AUM, only Franklin Templeton and IDFC witnessed gains in their AUM as they rose by 4.3 and 1.5 per cent, respectively.