Mutual Funds' Asset Base
Rises Marginally To Rs 25.68 Lakh Crore In Sep Quarter
The mutual fund industry
asset base saw a marginal one percent increase in the July-September quarter
to Rs 25.68 lakh crore against the preceding three months, mainly on account of
increase in the valuation of stocks due to corporate tax cuts. According to
Association of Mutual Funds in India (Amfi), the asset under management (AUM)
of the industry, comprising 44 players, stood at Rs 25.50 lakh crore at the end
of June quarter.
The total asset base of all
the fund houses put together was at Rs 24.31 lakh crore in July-September a quarter of 2018-19.
In recent months, the mutual fund industry has been grappling
with redemption pressures in the wake of debt crises at various groups,
including IL&FS, Essel and DHFL.
Fund managers said that the
industry assets have remained stable in the July-September period of 2019-20
and a slight rise in quarterly AUM could be attributed to a rise in valuation of
stocks due to a reduction in corporate tax by the government.
"The increase in
quarterly AUM is mainly due to the increase in the valuation of stocks due to corporate a tax cut," said Omkeshwar Singh, head of mutual fund distribution business
at Samco.
Kaustubh Belapurkar,
Director-Manager Research at Morningstar said, "Overall industry assets
have remained stable. But we have witnessed that many of the smaller asset
management companies (AMCs) have lost assets which have migrated to the larger
AMCs.
"Additionally, AMCs
which had investments in some of the stressed credits have also witnessed
outflows from these funds," he said.
In terms of asset size, HDFC MF continued to
lead the pack with an AUM of Rs 3,76,597 crore (excluding fund of funds) at the
end of the September quarter, followed by ICICI Prudential MF (Rs 3,48,068
crore) and SBI MF (Rs 3,20,663 crore).
The overall share of assets managed by the top 10 AMCs (by
AUM) is marginally up from 82.83 percent to 83.66 percent.
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