169 pc jump in MF mobilisation

169 pc jump in MF mobilisation
ENS ECONOMIC BUREAU

Mumbai, May 11: The fiscal 1999-2000 has proved to be an excellent year for mutual funds. Mutual fund mobilisation stood at Rs 61,241.23 crore during the financial year 1999-2000 as against Rs 22,710.73 crore mobilised during the previous year, while total assets were of the order of Rs 1,07,946.10 crore.

The Securities and Exchange Board of India (Sebi) while releasing the figures here on Thursday stated that after adjustment of repurchases and redemptions, there was an inflow of funds of Rs 18,969.88 crore in the last fiscal as against a net outflow of Rs 949.67 crore in the previous year. Net inflow of funds was of the order of Rs 15,166.48 crore in case of private sector mutual funds compared to net inflow of Rs 1,452.70 crore during the previous year 1998-1999.

While there was a net inflow of Rs 4,548.32 crore in case of UTI as against net outflow of Rs 2,737.53 crore during the previous year, there was a net outflow of Rs 744.92 crore in case of other public sector mutual funds (as against net inflow of Rs 335.16 crore during the previous year).

During April, 2000, mutual funds mobilised a gross amount of Rs 5,373 crore. After adjustment of repurchases and redemptions, there was net inflow of funds of Rs 1,629 crore, the Sebi release said.

The net assets of all domestic schemes of mutual funds were Rs 1,07,946.10 crore as on March 31, 2000 as against Rs 68,193.08 crore as on March 31, 1999. During the year 1999-2000, the share of UTI in the total assets of the mutual funds industry declined to 67 per cent from 77.9 per cent in 1998-99. Net assets of other public sector mutual funds have also shown a decline from 12.09 per cent in 1998-99 to 9.68 per cent in 1999-2000. However, net assets of private sector mutual funds have increased from 9.97 per cent in 1998-99 to 23.32 per cent in the year 1999-2000.

``It's true the year 1999-2000 was the best one for the mutual funds. But the current year is likely to be a stormy one for mutual funds. The crash in stock markets has already affected mutual fund net asset values. Some funds were even facing redemptions,'' said a fund manager.

The first three months of the current year are likely to be tough for mutual funds. The number of new schemes has also come down in the last one month.