AUM depletion due to mkt action not redemption: Sundaram MF

TP Raman, MD, Sundaram Mutual Fund AMC feels depletion in assets under management (AUM) that is more on account of market action rather than redemptions. He said that as far as midcap funds were concerned the company was systematically investing into metals, into finance and some stock specifics as far as midcaps are concerned.

Here is a verbatim transcript of the exclusive interview with TP Raman on CNBC-TV18. Also watch the accompanying video.

Q: How has the entire fund flow been this year versus last year in a lot of your tax savers scheme, this is usually a time when mutual funds and insurance companies see a lot of flows?

A: We have seen flows into our tax fund, the Sundaram BNP Paribas Tax Saver; that has seen about Rs 400 crore of net inflows. Looking at the total inflows on the tax front, we have got a significant share of inflows. We also have inflows into other funds particularly those focused on largecap fund.  We have also been seeing some inflows into midcap funds though not in a big way.

Q: Are the big redemptions over?

A: There have been no redemptions from our equity funds. I think the depletion in assets under management (AUM) that we have been seeing is on account of market action rather than redemptions. People have pulled out when the market rallied - the periodic rallies that market has seen from time-to-time have been selective redemptions but there’s nothing to get worried about on that count.

Also Read: Mkts seeing sector specific turnaround: DSP BlackRock MF

Continued on next page ...