MF industry assets grow 3% in April; HDFC adds Rs5,900 cr

MF industry assets grow 3% in April; HDFC adds Rs5,900 cr

New Delhi: The mutual fund industry witnessed nearly 3% growth in its assets under management over April, with the country’s second largest fund house HDFC MF adding over Rs5,900 crore to it.

The industry’s average assets under management (AUM) rose by Rs20,836 crore or 2.71% during April. The combined average AUM of the 37 fund houses stood at Rs7,68,361 crore.

Country’s top three fund houses -- Reliance MF, HDFC MF and ICICI Pru -- together saw their assets surge by Rs9,376 crore, with HDFC MF alone accounting for Rs5,923 crore.

Over April, the largest fund house Reliance MF saw an addition of Rs1,407 crore to its average assets to Rs1.12 lakh crore, as per data released by the Association of Mutual Funds in India (AMFI).

At the end of April, HDFC MF’s inched closer to the Rs100,000 crore mark to stand at Rs94,702.79 crore.

The third largest fund house ICICI Prudential MF saw its assets rising by ,046.66 crore to 83,036 crore.

“The amount withdrawn by the corporate and banks at the end of March quarter was ploughed back into debt schemes in April. Although equity products did not see much buying, liquid and fixed income schemes saw investor interest," Taurus Mutual Fund managing director R.K. Gupta said.

However, UTI MF bucked the trend and saw a decline of Rs761 crore from its assets to Rs79,457 crore during April.

During April, the BSE Sensex was marginally higher even as the overall street mood was bearish. Analysts said although inflow was not there in equity schemes, debt funds continued to witness investment interest.

Over the month the average assets of Birla Sun Life MF rose by Rs7,165 crore to Rs69,509 crore and L&T MF added a Rs1,614 crore in its AUM to Rs4,125 crore.

The other fund houses which saw their average AUM rise in April include JP Morgan MF, Edelweiss MF, Franklin Templeton MF and Tata MF.

Of the 37 fund houses in the country, about 12 saw an erosion in its average AUM. This include -- LIC MF whose assets fell by Rs1,796 crore to Rs40,508 crore and Kotak Mahindra MF to Rs33,743 crore, a declined of Rs938 crore during April.

Others that saw a decline in their assets include Fortis MF, Deutsche MF, Mirae Asset MF and Shinshei MF.

After touching a record AUM of 800,000 crore last year, industry’s average assets fell by 4.13% in January while in February it rose by 3%. Again it eroded by 5% in March on a month-on-month basis.