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Minnows outsmart mutual fund giants; grow 20-80% in April

Minnows outsmart mutual fund giants; grow 20-80% in April
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First Published: Sun, May 06 2007. 07 05 PM IST
Updated: Sun, May 06 2007. 07 05 PM IST
New Delhi: It’s not only the big names that are thriving upon investors’ growing preference for mutual funds as the industry minnows have outpaced even the country’s top five players in terms of growth in assets.
While the collective asset of fund houses in the country surpassed Rs3.5 lakh crore mark, adding over Rs24,000 crore in April, the show was stolen by players like Lotus India Mutual Fund, Taurus, ING Vysya and ABN Amro, which reported a 20-80% growth in their wealth during the month.
In comparison, the top five fund houses, including Reliance, ICICI Prudential and Franklin Templeton recorded less than 12% rise in their assets under management (AUMs).
While a lower base is the major factor behind better growth rates for small players, the analysts believe this should not take the credit away for the success their new fund offerings have met.
Besides, some of the well-known names, including the one-time leader of the market UTI MF, registered a decline in their assets, losing the share to new entrants like Lotus India and Taurus.
“The fund houses are growing on a smaller base, that’s why a modest increase also shows a huge growth in percentage terms,” mutual fund tracking firm Value Research Online CEO Dhirendra Kumar told PTI.
“Smaller mutual funds had launched a slew of NFOs (New Fund Offerings) during the first month of the current fiscal which have led to huge surge in their AUM, said Ashish Kapur of Invest Shoppe, a mutual fund distributor.
The base effect was also being reflected on the AUM number, he added.
However, the market leader Reliance MF retained its position as the largest fund house with a growth of 5.44%, while its closest rival ICICI Prudential clocked a 11.6% jump in assets.
Among the other top five players, Franklin Templeton and HDFC MFs gained 11.31% and 11% respectively.
In comparison, the public sector giant UTI MF’s AUM fell by Rs66 crore (0.2%) in the month, while those of LIC MF, Tata MF, Birla MF and DSP Merrill Lynch dropped by 2-6%.
Interestingly, the new entrant Lotus India’s AUM crossed Rs2,000 crore, rising from Rs1,171.86 crore as on March 31 to Rs2,086.79 crore at the end of April, a 78% increase, making it one of the fastest growing fund houses in the period.
The collective AUM of all the 30 fund houses soared to a record high of Rs3,50,441 crore at the end of April, breaching the Rs3.5 lakh crore level for the first time, according to the latest figures released by Association of Mutual Funds in India.
“The total assets of the fund houses have primarily swelled based on debt and fixed maturity plans and few equity schemes too,” Kumar said.
The combined AUM of the fund houses rose by over Rs24,017 crore during the month to a total of Rs3,50,441 crore in April as against Rs3,26,425 crore in March.
Reliance MF’s AUM swelled to Rs48,828 crore in April, gaining Rs2,521 crore from Rs46,307 crore in March, ICICI Prudential MF maintained its second position by grwoing to Rs42,268 crore, while UTI MF was at the third slot with assets of Rs35,517 crore.
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First Published: Sun, May 06 2007. 07 05 PM IST
More Topics: Money Matters | Mutual Funds |