MF base shrinks Rs 37,600 cr in a yr
The mutual fund industry industry lost 7 per cent or Rs 37,614 crore in the financial year 2008-09, during which the benchmark 30-share Sensex lost 38 per cent in the stock market, putting heavy redemption pressures on retail investors who pulled back money in panic or caution. HT Correspondent reports.business Updated: Apr 02, 2009 22:56 IST
Though India is a country with an emerging middle class that contains millions of savers, the scars of the global meltdown are deep. The mutual fund industry as a whole saw the assets it manages slump deeply in the fiscal year that ended this week.
The industry lost 7 per cent or Rs 37,614 crore in the financial year 2008-09, during which the benchmark 30-share Sensex lost 38 per cent in the stock market, putting heavy redemption pressures on retail investors who pulled back money in panic or caution.
According to data released by the Association of Mutual Funds of India, the industry witnessed a drop of 1.5 per cent in its assets under management (AUM) during the month of March alone from the previous month. The figure now stands at Rs 493,962 crore.
This was in a month when the Sensex rose by over 11 per cent as a result of the sharp recovery in the second half of the month.
While the industry lost over 7 per cent over the past fiscal year, there were, however, some winners in the list of the fund houses whose AUM figures shot up under management even under the volatile market conditions, defying the industry trend.
HDFC Asset Management Company (AMC), Birla Sunlife AMC and LIC Mutual Fund emerged as the major gainers as their AUM rose by Rs 13,183, Rs 11,187 and Rs 9,036 crore, respectively.
LIC, however, was the top gainer in percentage terms with rise in AUM of 64 per cent.
Among the losers during the financial year 2008-09, ING AMC and JM Financial AMC emerged the biggest as their AUM figures were shaved off by 71 per cent and 63 per cent, respectively.