MF assets fall more than 6%
As per data released by the Association of Mutual Funds in India, the average AUM for the industry fell by 6.3 per cent or Rs 35,494 crore in July, reports HT Correspondent.business Updated: Aug 03, 2008 23:15 IST
For the second consecutive month, the mutual fund industry witnessed a fall of more than 6 per cent in its assets under management (AUM). As per data released by the Association of Mutual Funds in India (AMFI) on Saturday, the average AUM for the industry fell by 6.3 per cent or Rs 35,494 crore in July to reach Rs 5,30,519 crore.
Over the past two months as many as 11 fund houses lost their AUM by more than 15 per cent, while the industry has lost more than Rs 70,000 crore or 11.8 per cent in the same period.
“The fall is not on account of the stock market,” said Ajay Bagga, CEO, Lotus India AMC (asset management company). “It’s the debt and liquid funds that have lost. As the bank’s liquidity is drying up, around Rs 50,000 crore to Rs 60,000 crore has gone out of the system.”
The three biggest losers during the month were Principal, ING and TATA that lost 14 per cent or more during the month.