Asset Under Management News

The monthly drop in the asset base is mainly due to an outflow of Rs 2.3 lakh crore from mutual fund schemes.

The investor count is also estimated to have risen by over 1.7 crore during the year.

Backed by a booming stock market and increasing interest from retail investors, the assets under management (AUMs) of the mutual fund industry is likely to touch the magical mark of Rs 20 trillion next month.

Investors remained bearish on gold exchange-traded funds (ETFs) as they pulled out Rs 775 crore from the instrument in the last fiscal, making it the fourth consecutive financial year of outflow.

Gold exchange-traded funds (ETFs) saw a net outflow of Rs 35 crore in January, taking the total to Rs 649 crore in the first 10 months of the current fiscal, primarily on account of profit booking.

Equity mutual funds saw an inflow of more than Rs 10,000 crore in December, making it the highest in 18 months, underpinned by investor optimism.

The performance stands out even better when seen in the context of the equities market not performing so well.

After having joined the Rs 1 trillion club of fund houses, the Unit Trust of India Mutual Fund (UTI MF) is now looking to cross the mark of Rs 1.1 trillion by the fiscal-end.

"We do believe that principal reason behind international equity funds not picking up currently is the differential tax treatment," JP Morgan Asset Management managing director and chief executive Nandkumar Surti told PTI, adding, "we keep giving representation on the issue to the government seeking a level playing field.

Indicating growing investor interest in capital markets, the average assets under management of equity-based exchange traded funds (ETFs) on the NSE has grown nearly five times to Rs 4,210 crore in the quarter ended March over the same period last year.

Sebi on Friday expressed concern over the disproportionately large amount of commission paid to mutual fund distributors, but the market regulator said it would be good if the industry puts a cap on the upfront fee.