Country's mutual fund industry witnessed a 5.9 per cent drop in its assets in June, buckling under the pressure of the meltdown in the stock market and the slow growth in the fixed income schemes in the month.
The combined average assets under management(AUM) of the 33 fund houses in the country dropped to Rs 5,64,599.28 crore at the end of June as compared to Rs 6,00,266.32 crore in May, according to data released by the Association of Mutual Funds in India.
"The main reasons, which impacted the growth in assets were the advance tax payments by corporates at the end of June, which led to almost no growth in the fixed income schemes, while equity investments were obviously impacted by the fall of about 18 per cent in the Sensex," mutual fund tracking firm Value Research Online CEO Dhirendra Kumar said.
Reliance Mutual Fund continues to be the top fund house in the country despite its average AUM falling to Rs 90,813.45 crore at the end of June from Rs 98,430.93 crore in the previous month.
However, ICICI Prudential, the second largest mutual fund, witnessed a marginal gain of Rs 413 crore in its assets at Rs 59,473.58 crore as against Rs 59,060.02 crore in the previous month.
Taurus Mutual Fund Director R K Gupta believe that more than the equity side, the assets may have been impacted by banks and corporates pulling out from income schemes because of the hike in interest rates.
"July could be the worst hit period for the mutual funds as withdrawals from corporates and banks in these schemes are likely to increase further," Gupta added.
HDFC MF has moved ahead of UTI MF as the third largest fund house in the country with AUM of Rs 52,710.80 crore at the end of last month as against the state-run fund house's Rs 50,770.56 crore.
UTI MF's average assets under management dropped Rs 3,881 crore to Rs 50,770.56 crore last month as against Rs 54,651.68 crore in May.
Besides, AUM of Franklin Templeton MF stood at Rs 24,742.06 crore as against Rs 27,990.87 crore in the previous month.
Thursday, July 03, 2008
Oil hits new peak on dollar, supply concerns
Oil jumped about $1 to fresh records on Thursday, as the dollar fell on gloomy U.S. jobs data and a broad equity sell-off, while a higher-than-expected fall in U.S. crude stocks raised supply concerns.
London Brent crude rose as much as $1.49 to a record of $145.75 a barrel. It was up $1.34 at $145.60 by 0715 GMT.
U.S. crude rose as much as $1.00 to an all-time high of $144.57 a barrel, before easing back to $144.54.
The dollar hit a two-month low against the euro on Thursday, after a report a day ago showed U.S. private employers cut the most jobs in nearly six years and as the U.S. Dow Jones industrial average sank into bear market.
Later on Thursday, traders will focus on the outcome of a European Central Bank meeting due at 1145 GMT, which may result in an interest rate hike that could weaken the U.S. dollar further.
Oil has risen more than 50 percent this year, helped by inflows of speculative money as investors seek to hedge against the falling dollar and inflation.
"We have the weaker U.S. dollar, the reduction in U.S. oil stocks... We may see a bit of profit taking tonight but it all depends on the U.S. dollar," said Gerard Rigby of Fuel First Consulting in Sydney.
In the latest of a series of news this week which stoked supply concerns, official data showed U.S. crude oil stocks fell more than expected last week, down 2 million barrels to 299.8 million barrels, putting commercial inventories below 300 million barrels for the first time since January.
Oil prices have jumped seven-fold since 2002, as demand from emerging economies such as China and India stretches supply growth.
In the Middle East, fears of an escalation in the tensions between Iran and the West over Tehran's nuclear programme continued to support oil prices.
The United States has said it would defend shipping in the Gulf if Iran made good on threats to block the Strait of Hormuz, in the event OPEC's No.2 producer was attacked.
Forty percent of the world's seaborne oil passes through the Strait.
But Iranian Foreign Minister Manouchehr Mottaki struck a conciliatory tone on Wednesday, saying Tehran would reply shortly to an offer from Western powers designed to curb its nuclear work.
Western nations say Iran's nuclear programme is aimed at developing atomic weapons, while Tehran insists it has only peaceful purposes
London Brent crude rose as much as $1.49 to a record of $145.75 a barrel. It was up $1.34 at $145.60 by 0715 GMT.
U.S. crude rose as much as $1.00 to an all-time high of $144.57 a barrel, before easing back to $144.54.
The dollar hit a two-month low against the euro on Thursday, after a report a day ago showed U.S. private employers cut the most jobs in nearly six years and as the U.S. Dow Jones industrial average sank into bear market.
Later on Thursday, traders will focus on the outcome of a European Central Bank meeting due at 1145 GMT, which may result in an interest rate hike that could weaken the U.S. dollar further.
Oil has risen more than 50 percent this year, helped by inflows of speculative money as investors seek to hedge against the falling dollar and inflation.
"We have the weaker U.S. dollar, the reduction in U.S. oil stocks... We may see a bit of profit taking tonight but it all depends on the U.S. dollar," said Gerard Rigby of Fuel First Consulting in Sydney.
In the latest of a series of news this week which stoked supply concerns, official data showed U.S. crude oil stocks fell more than expected last week, down 2 million barrels to 299.8 million barrels, putting commercial inventories below 300 million barrels for the first time since January.
Oil prices have jumped seven-fold since 2002, as demand from emerging economies such as China and India stretches supply growth.
In the Middle East, fears of an escalation in the tensions between Iran and the West over Tehran's nuclear programme continued to support oil prices.
The United States has said it would defend shipping in the Gulf if Iran made good on threats to block the Strait of Hormuz, in the event OPEC's No.2 producer was attacked.
Forty percent of the world's seaborne oil passes through the Strait.
But Iranian Foreign Minister Manouchehr Mottaki struck a conciliatory tone on Wednesday, saying Tehran would reply shortly to an offer from Western powers designed to curb its nuclear work.
Western nations say Iran's nuclear programme is aimed at developing atomic weapons, while Tehran insists it has only peaceful purposes
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