MFs AUM slips 2% in December

Mumbai, Jan 4 | Updated: Jan 5 2006, 05:58am hrs
The total assets under management (AUM) of the mutual fund (MF) industry dipped by nearly 2%, or Rs 3,926 crore, in the month of December as investors booked profits at a time when the markets were trading at record levels.

The month of December also saw MFs turning net sellers at Rs 1,377 crore for the first time in nearly six months.

According to figures released by the Association of Mutual Funds in India (Amfi), the AUM, at the end of December, was pegged at Rs 2,00,559.93 crore, lower than that of November when it was Rs 2,04,486.12 crore.

Fund managers attribute the fall to the rise witnessed on the equity bourses in December, when the benchmark Sensex of the Bombay Stock Exchange (BSE) gained nearly 7% or 609 points. Rajat Jain, chief investment officer, Principal PNB AMC, said, Whenever the equity bourses are trading at all-time high levels, the mutual fund industry faces redemption pressures, as there will always be investors who will want to book profits at such times. This is quite expected and there is nothing to worry about, added Mr Jain.

Among the 28 different fund houses in the country, Deutsche MF was the worst performer with the AUM going down by nearly 27% or Rs 862.48 crore. Other fund houses like Standard Chartered MF, ABN Amro MF, ING Vysya MF and

Tata MF also witnessed a double-digit fall in the AUM in December.

On the other hand, LIC MF, Franklin Templeton MF, Prudential ICICI MF, Fidelity MF, and Reliance MF were some of the fund houses that saw their AUMs rise in December.