The bull run in the capital market, where the Sensex gained
over 300 points in June 2003, has failed to produce any
positive impact on the equity-based mutual fund schemes.
The equity MF schemes have witnessed a withdrawal of over
Rs 700 crore from its leading balance and money market
assets under management of the equity funds mirrored the
massive gains on the indices. The assets grew almost 10.05
per cent from Rs 11,069 crore in May to Rs 12,181 crore
in June. But investors did not prefer to make fresh investments
into equity schemes, which was evident by the fresh outflows
registered by the equity funds.
Kotak Mahindra MF chief marketing officer Prakash Dalal:
"While there has been a gross inflow of cash into
the equities schemes, a lot of old investors who had entered
at lower levels have booked profit in this bull run. Besides,
debt has always been a safe investment option for high-net
trend shows that income (debt) funds were clear winners
in this case as huge inflows continued to flood these
schemes. They saw massive inflows to the tune of Rs 4,057
crore last month. Among debt funds, gilt schemes were
another category that caught the investors' eye, registering
inflows up to Rs 533 crore.
Canbank MF equity fund manager Umesh Kamat: "The
general feeling among the investors is that the market
is over-heated, thus booking profit at higher levels."
chief investment officer with a foreign MF says while
the asset under management under various equity schemes
have increased, there has been some redemption on account
of high dividend yield and profit bookings by investors.
MF industry saw a facelift this June with HDFC and Zurich
merger finally coming into effect and also IDBI exiting
IDBI Principal MF. The assets under management of the
entire mutual fund industry grew 6.34 per cent with the
maximum growth seen in the bank-sponsored MFs.
the individual asset management companies (AMCs) that
saw a huge spurt in asset size, Unit Trust of India figured
on top of the list while Prudential ICICI ranked second.
Currently, Prudential ICICI is the top private AMC in
terms of assets size. In spite of the merger with Zurich,
HDFC could not manage to acquire the top slot among AMCs
in terms of assets.