Reliance MF corpus swells past Rs 100,000 cr
Although the stock market is reeling from the US sub-prime crisis, Indian investors continue to pump money into mutual funds, reports Arun Kumar.Updated: May 01, 2008, 22:36 IST
Although the stock market is reeling from the US sub-prime crisis, Indian investors continue to pump money into mutual funds. Reliance Mutual Fund, owned by the Anil Ambani-controlled Reliance Capital, reached a new milestone by notching up Rs 100,000 crore of assets under its management this April.
Reliance Mutual Fund has added Rs 10,000 crore in April and its corpus has swollen to Rs 100,800 crore — which includes Rs 34,000 crore in equity schemes and Rs 66,800 crore in debt funds (liquid and fixed maturity plans).
“We have built a robust model around systematic investment plans (SIPs) in equity and fixed maturity plans (FMPs) in debt, which ensures a continuous inflow and also helps in insulating our unit-holders from market volatility,” said Vikrant Gugnani, chief executive officer, Reliance Mutual Fund.
Data for other mutual funds was not available for April 2008, but as on March 2008, the industry size stood at Rs 530,000 crore.
Reliance Mutual Fund had 800,000 investors under SIPs, which gave it an assured inflow of Rs 400 crore a month, Gugnani said and added that 40,000 people were signing up every month for such investment schemes.
“In the last four months market performance was exceedingly poor, particularly for India and China,” said Vijayan Krishnamurty, CEO of JP Morgan Asset Management Company.
“In India, investors have continued to invest, particularly through SIPs and systematic transfer plans, which is a good sign. In comparison, I understand, the mutual fund industry in the US has witnessed a net outflow over the same period.”