MF assets see big erosion in October
Assets under management (AUM) of mutual fund houses have seen huge erosion in value in the month of October.business Updated: Nov 03, 2008 20:44 IST
Assets under management (AUM) of mutual fund houses have seen huge erosion in value in the month of October.
With six fund houses yet to disclose their data, figures released by industry body Association of Mutual Funds in India (AMFI) for 29 mutual funds (representing 73 per cent of the AUM) till Monday evening shows that they have lost Rs 72,234 crore or 18.7 per cent in the month of October.
If the balance six — including ICICI Prudential and UTI — fall in the same proportion, it is clear that the industry is set to lose close to Rs 100,000 crore in the month of October.
Reliance Capital Asset Management alone lost Rs 15,400 crore or 18 per cent in October. The biggest loser out of the 28 AMC’s in percentage terms is Canara Robeco AMC that lost over one third of its AUM followed by Lotus India AMC that lost 31 per cent of its AUM in a month.
“For us, the reason for the fall in the AUM has been the fall in the value of equity funds,” said T.P. Raman, chief executive officer, Sundaram BNP Paribas AMC that lost 16 per cent in October.
And if the equity portfolio is losing because of a falling market, companies are withdrawing money from cash funds.