Global meltdown and uncertainty in the Indian financial market clearly reflected in the figures of Asset under Management (AUM), which registered a decline of Rs 15,128.81 crores or 2.78% for September, as compared with previous month. The dealers in the market say in the coming months we might witness further erosion of the AUM figures due to the high volatility in the Indian equity markets.
The Asset under Management for September stood at Rs 5,290,45.13 crore compared with Rs 5,441,73.95 crore in August, according to the Association of Mutual Funds in India (Amfi). Reliance Mutual Fund, which usually remains at the top, also saw decline of Rs 2,122 crore or 2.39% in their AUM for September.
Jimmy Patel, CEO Edelweiss Mutual Fund said, ?In September we saw many major events which had a negative impact on the Indian markets. Apart from that we also witnessed liquidity crunch, which is one of the major reasons for the decline in AUM for September.? Edelweiss Mutual Fund, the latest entrant in the list, has reported net collections of over Rs 302 crore in September.
In August we had which witnessed an increase in AUM, majorly on the back of funds mobilised through Fixed Maturity Plans (FMPs) schemes. HDFC AMC, which replaced ICICI Prudential as the second-largest fund house in the month of August, saw a decline of Rs 1,860.34 crore 3.45% in its average asset base and its AUM stood at Rs 51,998.28 crores in September compared to Rs 53,858.63 crores in August.
The third-largest fund house in the country, ICICI Prudential, is down by Rs 3,320.29 crore or 6.25% at Rs 49,772.48 crore compared with Rs 53,092.78 crore in August. ?As long as volatility prevails in the Indian equity markets we assume that we might see further decrease in the AUM in the coming month,? added Patel.
UTI MF also saw dip in their AUM at Rs 44,623.18 crores in September compared with Rs 46,947.32 crores a decrease of Rs 2,324.13 crores or 4.95%.