MF industry AUM rises by Rs 1.5 lakh cr in 2012-13

Improved market sentiments helped mutual funds' assets under management (AUM) soar by over Rs 1.5 lakh crore to touch Rs 8.2 lakh crore in 2012-13.

The country's 44 fundhouses together had an average AUM (assets under management) of Rs 8,16,400 crore at the end of fiscal year ended March 31, 2013, according to latest data available with the Association of Mutual Funds in India (AMFI).

The total AUM rose by a staggering Rs 1.51 lakh crore or an increase of 23 per cent during 2012-13 from Rs 6,64,792 crore in the preceding fiscal. Mutual Funds assets have been growing since January-March quarter of 2012. The industry's total assets base was at Rs 7,86,543 crore in the October-December quarter of fiscal 2012-13.

Mutual funds collect money from investors and later invest the same into various market segments including stocks, IPOs (primary market) and bonds.

During the fiscal, the market benchmark Sensex soared by about 8 percent on positive measures taken by the government.

Most of the fundhouses, including the top-ranked HDFC, Reliance, ICICI Prudential and UTI saw their AUMs rise during the last quarter.

However, fundhouses like Sahara, BNP Paribas, Edelweiss, ING and Canara Robecco witnessed a decline in their AUMs from the levels seen in the previous fiscal. Of the 44 fundhouses, 39 entities saw their AUMs rise during the period.

Market experts largely attributed the rise in AUM to a number of factors, including steps taken by the government and the market regulator to revive equity culture in the country and help channelise household income into stocks and mutual funds.

In the past fiscal, Reliance Mutual Fund's assets have grown by Rs 16,468 crore amounting to 21 per cent to Rs 94,580 crore, while that of HDFC MF has increased by Rs 11,842 crore translating to a 13-percent growth at Rs 1,01,720 crore.

Excluding the domestic Fund of Funds, wherein a mutual-fund scheme invests in various funds, HDFC MF retained its top slot with AUM of Rs 1,01,720 crore, followed by Reliance Mutual Fund (Rs 94,580 crore), ICICI Prudential Mutual Fund (Rs 87,835 crore), Birla Sun Life Mutual Fund (Rs 77,046 crore) and UTI Mutual Fund (Rs 69,450 crore) in the top five list.