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Rediff.com  » Business » Firms, banks control over 50% of MF assets

Firms, banks control over 50% of MF assets

Source: PTI
June 05, 2009 19:14 IST
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Corporate houses, banks and financial institutions account for more than half of the mutual fund industry's total assets under management, while retail investors hold less than one-fourth of the assets, a report says.

According to the category-wise data released by the Association of Mutual Funds in India, corporate, banks and FIs controlled a combined Rs 2.23 lakh crore (Rs 2.23 trillion) out of the total assets under management (AUM) of nearly Rs 4.2 lakh crore (Rs  4.2 trillion) as on March 31.

The AMFI, which provides average AUM figures of all fund houses at the end of each month, has introduced this type of investor classification for the first time.

Meanwhile, retail investors held just Rs 91,805.61 crore (Rs 918.056 billion) out of the total assets of mutual funds at the end of March.

The retail investors held Rs 75,693 crore in equity schemes, while Rs 16,112.50 crore (Rs 161.125 billion) investment was in non-equity schemes.

Retail investors have invested the most in equity oriented schemes at around Rs 70,000 crore (Rs 700 billion), while their exposure in debt-oriented schemes was just Rs 8,070 crore (Rs 80.70 billion) and Rs 672 crore (Rs 6.72 billion) in money market funds.

Most of the investment by corporate houses was in non-equity schemes, mainly in fixed maturity plans and money market schemes. Corporates invested as much as Rs 1,27,845.36 crore (Rs 1.278 trillion) in fixed maturity schemes, while Rs 66,324 crore (Rs 663.24 billion) was in liquid or money market schemes.

Besides, high networth individuals, who invest Rs 5 lakh (Rs 500,000) and more, controlled as much as 23 per cent of the fund houses' assets, the data pointed out.

HNIs accounted for assets of Rs 95,587.55 crore (Rs 955.875 billion) at the end of May, of which Rs 28,026.35 crore (Rs 280.263 billion) was in equity schemes while Rs 67,561.20 crore (Rs 675.612 billion) was in non-equity schemes.

Interestingly, the FIIs, which are at present bullish on Indian equities, had less than 2 per cent exposure in mutual funds at the end of March.

FIIs accounted for assets to the tune of Rs 7,070 crore (Rs 70.70 billion) in the reviewed period, with fixed maturity debt schemes being their favorites, the data showed.

Meanwhile, the total assets under management of the Mutual Fund industry at the end of May have crossed the Rs 6 lakh crore (Rs 6 trillion) mark with the recovery in the equity market boosting investor confidence.

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