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Tuesday, March 11, 2008

Mutual funds' assets grow to US$ 140 billion in February

Country's mutual fund industry has witnessed an increase of Rs 17,406 crore in its assets to over Rs 5.65 trillion by the end of February, led by Anil Ambani -promoted Reliance Mutual Fund.
According to data available with the Association of Mutual Funds in India, the combined Assets Under Management (AUM) of the 32 fund houses jumped to Rs 5,65,469.53 crore at the end of February this year, compared to Rs 5,48,063.51 crore till January.
Reliance Mutual Funds maintained its top position with AUM of Rs 93,531.67 crore for February compared to Rs 77,210.03 crore in January, adding Rs 16, 321.64 crore during the month.
ICICI Prudential MF is the second largest fund house, despite recording a decline of Rs 4,767.42 crore in its AUM.
At the end of February, ICICI Pru's AUM stood at Rs 59,277 crore against Rs 64,045 crore in the previous month.
State-run UTI MF also suffered a dip in its assets in February, which stood at Rs 52,464.71 crore compared to Rs 52, 656.19 crore in the previous period.
The other two fund houses among the top five --HDFC MF and Franklin Templeton have AUM worth Rs 46,291.97 crore and Rs 29,901.69 crore, respectively in February.
According to industry people, the market could soon attain a size of over Rs 10 trillion given the huge potential yet to be tapped by the new as well as existing players.
Eyeing the huge opportunity available more than a dozen new players are looking to start their businesses either this year or by early 2009.
The prominent names likely to start their mutual fund businesses soon include leading financial services firm Indiabulls Financial Services, banks like Axis Bank, Bank of India and Yes Bank.

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