As many as 15 fund houses including the second and third largest fund houses — ICICI Prudential AMC and UTI AMC — respectively witnessed a fall in their AUM’s.

ICICI Prudential saw the maximum decline in absolute numbers in its AUM of Rs 4,767 crore. Kotak Mahindra AMC and Birla Sunlife AMC saw a decline in the assets under management (AUM’s) by 1,327 and 1,227 crore respectively.

This is in contrast to the performance of the market leader Reliance Mutual Fund that grew by Rs 16,321 crore, a rise of 21 per cent to reach at an AUM of Rs 93,531 crore.

According to Ajay Bagga, chief executive officer, Lotus India AMC, that also witnessed a decline in its AUM, “We witnessed redemption pressure from the debt side especially the liquid funds and the FMP’s which resulted in the fall in the AUM.”

So pressure has come from the redemption in debt funds especially from the corporates and not because of redemption pressure from equity funds and market movements.

“There has been an inflow in the existing equity schemes but outflows in the debt schemes and to some extent the volatility in the market has resulted to the decline in AUM’s,” added the chief executive officer of a mid sized mutual fund house.

The mutual fund Industry after witnessing a decline in the AUM in January saw some good news coming its way as the AUM at the end of February grew by 3.2 per cent to stand at Rs 5,65,469 crore, an increase of Rs 17,406 crore.

... contd.