The global slump in the financial markets and the redemption strain in the Indian mutual fund (MF) industry have impacted the resource mobilisation of new equity schemes in the last few months. Dealers in the market say that investor sentiments towards new schemes have weakened due to the current global slowdown and it will take some more time to ease the pain.
According to the data furnished by the Association of Mutual Funds in India (Amfi), the MF industry mobilised Rs 39 crores in October through three new equity schemes a decrease of over 64.86%, or 72 crores, compared to September. In September, MF industry had mobilised Rs 111 crores in new equity schemes.
A Balasubramanian, chief investment officer of Birla Sun Life Mutual Fund, said, ?We can attribute such a steep fall in the new equity schemes only to the current condition of Indian markets. In the last few months we have witnessed massive volatility which has also impacted the MF industry in India. We assume it will take few more months for everything to settle down in the MF markets.? In October nearly 18% of the total asset under management (AUM) has been eroded, due to the meltdown in the financial markets
In October Rs 39 crores were mobilised through three equity schemes which were Bharti AXA Equity Fund, Escorts Power & Energy Fund and IDFC-50: 50 SSEF. Rs 165 crores were mobilised in August through new equity schemes.
?MF industry saw one of the worst days during the month of October, with crude and commodity prices coming down we expect that in the coming months there might be less pain. But now it is a huge task for the various fund houses to once again attract the new investors in their schemes,? said a fund manager from the leading fund house. The new schemes can revive only after the revival of the global as well domestic economy.