MF assets nearing Rs 2,00,000 cr

Riding high on the stock market boom, the mutual fund industry has grown by 26 per cent till August 2005.

Riding high on the stock market boom, the mutual fund industry has grown by 26 per cent till August 2005 and assets under management are likely to cross Rs 2,00,000 crore soon.

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"The fundamentals of the economy are strong. Liquidity has increased as more and more FIIs are heading to India. India Inc is also on the upturn and the trend will continue at least for the next 3-4 years," Association of Mutual Funds in India chairman AP Kurian said on the sidelines of a conference on pension here today.

The overall performance on equity oriented mutual fund schemes would continue to be better than the two major indices Sensex and Nifty, he said.

"Till August, the AUM of mutual funds were at Rs 1,95,000 crore, a growth of 26 per cent since August 2004. The AUM will soon touch Rs 2,00,000 crore mark," he said.

The AUM of all mutual funds were at Rs 1,49,554 crore in fiscal ended March 31, 2005.

Since March, mutual funds increased their AUM by almost Rs 50,000 crore thanks to the boom in equity market, launch of 30 new equity schemes and rising awareness among the masses.

In August alone, the mutual funds industry witnessed inflows to the tune of Rs 7,500 crore in equity schemes.

MF industry expanded by 33 per cent in the last five months as the Sensex surged from 6,500 to over 8,500 points during the same time.

Kurian said the share of equity schemes increased from 16 to 30 per cent in the total AUM of mutual funds.

Sensex was up by 50 per cent during August 2004 to July 2005, while the diversified equity schemes increased their returns by 62 per cent.