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Home > Business > Special



MFs see net outflow of Rs 4603 cr in June

Reena Prince, Moneycontrol.com | July 10, 2006

The volatility that hit the market in June indeed forced several investors to press the panic button. The mutual fund industry witnessed a net outflow of Rs 4603 crore (Rs 46.03 billion) in June for the first time this year, reveals the AMFI figures released on Monday.

Equity schemes registered a net outflow of Rs 1288 crore (Rs 12.88 billion) as against net inflow of Rs 10,562 crore (Rs 105.62 billion) in May 2006, while debt schemes saw a net outflow of Rs 2110 crore (Rs 21.1 billion) as against net inflow of Rs 883 crore (Rs 8.83 billion) in the previous month.

Net flows in June 2006 

Schemes

Sales

Redemptions

Net flow

Income

12,567

14,677

-2,110

Growth

4,383

5,671

-1,288

Balanced

159

215

-56

Money Market

118,917

119,940

-1,023

Gilt

62

277

-215

ELSS

99

10

89

Total

136,187

140,790

-4,603

Off the total sales of Rs 4383 crore (Rs 43.83 billion) registered by equity funds, Rs 1809 crore (Rs 18.09 billion) was contributed by the two equity NFOs - Standard Chartered Enterprise Equity Fund and UTI -Spread Fund, leaving the actual sales from existing schemes at Rs 2574 crore (Rs 25.74 billion).

MF Equity Sales (Rs crore)

New Funds 

1,809

Existing Funds

2,574

Total sales

4,383

 

 

MF Debt Sales (Rs crore)

New Funds 

5,612

Existing Funds

6,955

Total sales

12,567

Money market (liquid) schemes too came under the hammer as they witnessed a net outflow of Rs 1023 crore (Rs 10.23 billion) as against a net inflow of Rs 24,353 crore (Rs 243.53 billion) in May. ELSS (Equity Linked Saving Schemes) schemes with 3-year compulsory lock-in were the only ones to be spared from this short-term volatility that hit markets. ELSS category saw money flowing into its kitty with a net inflow of Rs 89 crore (Rs 890 million) though 44 per cent lower than the Rs 158 crore (Rs 1.58 billion) inflow witnessed in May.

AUM (Rs in crore)   

Category

May-06

Jun-06

Diff.

% diff.

Income

57,436

54,113

-3,323

-5.8%

Growth

93,748

87,196

-6,552

-7.0%

Balanced

7,279

6,961

-318

-4.4%

Money Market

108,854

108,776

-78

-0.1%

Gilt

2,788

2,566

-222

-8.0%

ELSS

6,238

5,922

-316

-5.1%

Total

276,343

265,534

-10,809

-4.1%

In the debt category, off the total sales of Rs 12,567 crore (Rs 125.67 billion), Rs 5612 crore (Rs 56.12 billion) was collected from 22 close-ended debt NFOs, while Rs 6955 crore (Rs 69.55 billion) was collected from existing debt schemes in June.

Meanwhile, the assets under management, AUM, of equity schemes dipped further by 7 per cent to Rs 87,196 crore (Rs 871.96 billion) in June as against Rs 93,748 crore (Rs 937.48 billion) in May. AUM of ELSS plunged by 5.1 per cent to Rs 5,922 crore (Rs 59.22 billion) from Rs 6,238 crore (Rs 62.38 billion).

Total assets managed by the mutual fund industry plunged by Rs 10,809 crore (Rs 108.09 billion) or 4 per cent to Rs 265,534 crore (Rs 2655.34 billion) in June, as against Rs 276,343 crore (Rs 2763.43 billion) in May.

Birla, DSP ML, Pru ICICI [Get Quote], Reliance [Get Quote], and Kotak were among the fund houses that saw maximum asset erosion between Rs 1000 crore (Rs 10 billion) and Rs 2500 crore (Rs 25 billion).

While Standard Chartered riding on its NFO collection, LIC [Get Quote], HDFC [Get Quote], Tata, and HSBC were among the funds that witnessed a positive movement in their assets of about Rs 250 crore (Rs 2.5 billion) to Rs 1000 crore (Rs 10 billion).

Meanwhile, all the top five fund houses retained their respective positions in terms of their AUMs, with Prudential ICICI at the top, followed by UTI, Reliance, HDFC and Franklin Templeton MF.

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