Reliance Mutual Fund has toppled UTI MF to become the country's largest fund house in January with assets under management of more than Rs 39,000 crore (Rs 390 billion).
The asset manager is yet to resolve the impasse surrounding the payment of pension to its erstwhile employees who had opted for voluntary retirement in 2003.
UTI Mutual Fund will hit the capital markets with initial public offering on Tuesday for its sixth thematic funds including auto, banking and public sector undertakings.
UTI Mutual Fund has targeted to raise at least Rs 5,000 crore by distributing its products through bank branches over the next 12 months.
UTI Mutual Fund will shortly launch auto sector fund and portfolio management scheme (PMS) even as it forged a tie-up with Corpration Bank to distribute mutual fund schemes through the latter's branch network in the country.
The government is likely to consider a proposal to privatise UTI Mutual Fund after the completion of the valuation and due diligence process, Union Finance Secretary S Narayan said on Tuesday.
Fund managers are divided on the prospects for beaten-down information technology (IT) stocks, reflected in the wide variance in equity mutual funds' (MFs) sector exposure. An analysis by Nuvama Alternative & Quantitative Research shows that while six large fund houses were overweight the sector relative to its weight in the Nifty 200 index, five were underweight as of October 2025. UTI MF had the highest exposure at 17.8 per cent, while SBI MF sat at the bottom with 5 per cent.
The competitive intensity in the mutual fund (MF) industry is moving beyond scheme performance, cost structures, and distribution. In recent months, several fund houses have rationalised exit loads applicable on redemptions.
UTI MF will also launch six more schemes as part of its growth plans.
The country's biggest mutual fund, UTI Mutual Fund, on Monday announced the launch of its new scheme 'UTI-Dividend Yield Fund', which will invest in 60-70 high dividend yield stocks.
UTI Asset Management Company, the country's fourth-largest mutual fund, is reviewing its proposed initial public offering in view of the turbulence in the global financial markets and the meltdown in Indian equities. The management is having a rethink on the IPO because of the bearish sentiment prevailing in the markets and a lack of investor appetite, according to a source familiar with the development.
Unit Trust of India Mutual Fund, which commenced operations at the beginning of this month, is targeting to double its Assets Under Management to Rs 30,000 crore (Rs 300 billion) in the next 12 months, chairman and managing diector M Damodaran said.
UTI Asset Management Company will float an initial public offer by March-end 2008 to help its sponsors State Bank of India, Life Insurance Corporation, Punjab National Bank and Bank of Baroda -- offload up to 50 per cent stake.
Backed by their strong physical presence across the country, UTI Mutual Fund and SBI Mutual Fund (MF) have managed to mobilise a higher proportion of their total assets under management (AUM) from towns and villages than their peers. Data compiled by Nuvama Institutional Equities shows that UTI MF and SBI MF are the only two major fund houses with over a fifth of their AUM coming from areas beyond the top 30 cities (referred to as B-30). UTI MF tops the chart with 23.8 per cent of its assets belonging to B-30 centres, followed by SBI MF with 21.2 per cent B-30 assets. The industry average stands at 17 per cent.
T S Vijayan, whose five-term as the chairman of government-owned Life Insurance Corporation of India (LIC) ended on Tuesday, is likely to shift to UTI Mutual Fund as the new head.
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
The move follows the near Rs 60 crore (Rs 600 million) redemptions every month from the US-64 and ARS bonds in the last couple of years.
The IPO is an offer for sale of 38 million shares by SBI, BOB, LIC, PNB and T Rowe Price. Barring T Rowe and PNB, the others are selling stake to comply with Sebi norms.
UTI Mutual Fund plans to foray into the pension sector once the government sets up Pension Fund Regulatory and Development Authority in October this year.
The country's leading fund manager UTI Mutual Fund is likely to enter the capital market with its public issue by the end of current fiscal and has already got the approval from its board for the IPO.
Four regionally strong banks -- Bank of India, Corporation Bank, Allahabad Bank and Oriental Bank of Commerce -- are in the fray to buy out sponsor's stake in UTI Mutual Fund that manages assets worth Rs 20,000 crore
Life Insurance Corporation and UTI Mutual Fund are in the fray for entering the lucrative pension business, which is slated to grow to Rs 50,000 crore (Rs 500 billion) by 2010.
The government is not in favour of selling UTI Mutual Fund to a private player and has insisted that one of the existing sponsors buy it by this fiscal.
The government on Thursday appointed PSU mutual funds UTI MF and SBI MF as managers of the corpus lying with postal and rural life insurance entities, a move that could lead to investment of the sum into the booming capital market.
The scheme encourages retail investors to participate in capital markets.
India's mutual fund industry, led by market leaders Reliance Mutual Fund, ICICI Prudential and UTI MF, has witnessed a fall of over Rs 58,000 crore (Rs 580 billion) in its assets during March.Despite the fall, Reliance MF continued to be the most valued fund house in the country with Assets Under Management (AUM) of Rs 90,937.94 crore (Rs 909.37 billion) at the end of March.
Mutual fund houses hold Rs 3,400 crore of Yes Bank's 'riskier' bonds. Reliance MF, Franklin Templeton MF and UTI MF account for bulk of these exposures.
The net inflows into active equity mutual fund (MF) schemes registered more than a twofold month-on-month rise in August, crossing Rs 20,000 crore, the highest in five months. This rise in net inflows was boosted by an 18 per cent growth in gross investments, driven by a record Rs 15,800 crore inflow through the systematic investment plan (SIP) route and Rs 5,000 crore collected by seven new fund offers (NFOs) in the active equity space, reveals data released by the Association of Mutual Funds in India (Amfi). Moreover, redemptions moderated in August, declining by 19 per cent to Rs 24,580 crore, after staying elevated in the previous three months owing to profit booking.
More than 50 per cent of SIP accounts come from semi-urban and rural areas.
Ulhas Joshi, Head -- Sales, Rank MF, a mutual fund investment platform, answers your queries.
Experts say the impact on the schemes' NAVs may vary in the coming days, depending upon how fund houses treat the developments on VIL and whether there are any further rating downgrades or credit events.
UTI's legacy and brand recognition, together with a robust distribution network and access to public sector money, could work in its favour, and help it command a premium
HDFC Bank's latest shareholding data showed that the room for foreign investment has fallen just 5 basis points short of the threshold set by Morgan Stanley Capital International (MSCI) to fully include the stock in its indices. Currently, the index provider has applied an adjustment factor of 0.5 since the foreign room is less than 25 per cent. Removal of the adjustment factor will result in inflows of a massive $4.8 billion (Rs 40,000 crore) into HDFC Bank, according to Brian Freitas, a New Zealand-based analyst with Periscope Analytics.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
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