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September 04, 2007 15:30 IST
Continued volatility in Indian stock markets over the US subprime mortgage crisis all through August has led to a fall in assets of mutual funds in the country by over Rs 185 billion during the month.
The total Assets under Management of 32 fund houses have decreased to Rs 4,67,623.44 crore (Rs 4,676.23 billion) from Rs 4,86,129.22 crore (Rs 4,861.29 billion) in July, latest data from Association of Mutual Funds in India showed.
Reliance [Get Quote] MF remains the country's largest fund house with its AUM increasing to Rs 67,597.65 crore (Rs 675.97 billion) in August as against Rs 66,420.03 crore (Rs 664.20 billion) in July.
ICICI [Get Quote] Prudential MF is at the second rank with AUM of Rs 50,611.89 crore (Rs 506.11 billion) in August, increasing from Rs 48,688.55 crore (Rs 486.88 billion) in July. However, state-run UTI MF witnessed a dip in its AUM
to Rs 41,698.56 crore (Rs 416.98 billion) in August from Rs 42,574.60 crore (Rs 425.74 billion) previous month.
Other fund houses in the top league are HDFC [Get Quote] MF and Franklin Templeton MF with AUM of Rs 40,871.49 crore (Rs 408.71 billion) and Rs 29,992.14 crore (Rs 299.92 billion) respectively.
The BSE benchmark index Sensex had witnessed a sharp volatility during the past month on concerns related to the US subprime mortgage crisis. The index had dipped below the 14,000 mark in the month, but managed to bounce back to 15,000 level in the last two days of the month.
Analysts, believe the decline in the assets of fund house may be due to the redemptions by investors on concerns of a market meltdown and utilisation of cash pile of mutual funds for making purchases in the bearish markets.
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