Mutual funds or MFs have seen sharp erosion in assets in the month of October. Total assets under management (AUM) may be down 20% or one lakh crore rupees in a month.

Here is a verbatim transcript of Vivek Law’s comments on CNBC-TV18. Also watch the accompanying video. 

MFs have seen sharp erosion in assets in October and the total AUMs may be down 20% in a month.  There has been acute amount of redemption in debt side, and meanwhile, there was a 26% fall in the equity market in October.

Thankfully, the equity component of overall pool of five lakh crore is not so great, rather it’s just Rs 1.3 to 1.4 lakh crore. Thus, the loss there has been not as brutal as it has been in debt funds.

Following is the data available of the AUMs of various Mfs.

Company                      Fall (%)             AUM (Rs Cr)

Reliance MF                  18                     Rs 71,093 cr

DSP                             19.68

HDFC MF                      12.5                  Rs 45,479 cr

Franklin Temp                22.4                  Rs 22,003 cr

Lotus MF                      31.2                   Rs 5,457 cr

ABN Amro MF               20.5                  Rs 7,127 cr

Kotak MF                      20                     Rs 14,916 cr

HSBC MF                     18.7                   Rs 12,632 cr

But two major MFs – ICICI Prudential and UTI MF are yet to declare their numbers. However, if we presume that the two MFs will be down around 10-14%, we have an addition of around one lakh crore to the current figures.

The AUMs of 26 fund houses for October is about Rs 3.04 lakh crore and if we add a lakh crore we get about Rs 4 lakh crore as compared to Rs 5.26 lakh crore in September.

This shows that industry overall has lost 15-20% and could be staring at the biggest erosion in its AUM.