Total AUM of MF Industry Declines by 13% in March '12

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Total Assets Under Management (AUM) of the mutual fund (MF) industry declined by 13% (by Rs 88021 crore) to Rs 5.87 lakh crore in March 2012, the lowest AUM since June 2009. The month-on-month decline in AUM was the worst in 12 months. Except for Gold Exchange Traded Fund (ETF) whose AUM increased marginally by 0.9%, rest of the categories witnessed fall in AUM.

The decline in assets of the industry was basically due to huge outflows of Rs 76537 crore and Rs 7654 crore from Liquid and Income Funds respectively. Net outflow from the industry stood at Rs 83765 crore in March 2012, which was worst than the net inflow of Rs 1271 crore in February 2012.

AUM of equity funds declined around 2% (by Rs 3646 crore) to Rs 1.82 lakh crore due to mark-to-market losses. The equity market represented by the benchmark Nifty and Sensex fell by 1.7% and 2% respectively in March after recording gains in the previous two months. The category witnessed marginal net inflows of Rs 71 crore in March which was primarily due to inflows into Equity Linked Savings Scheme (ELSS) category.

Income funds saw net outflows for the fifth consecutive month and it was Rs 7654 crore in March. Other Exchange Traded Funds witnessed eight consecutive months of net outflows. Its net outflows stood at Rs 31 crore in March.

Gold ETF witnessed the highest net inflows in last four months. It stood at Rs 231 crore in March.

The industry registered net outflows for the second consecutive fiscal, it stood at Rs 22023 crore for the fiscal ending March 2012, as against net outflow of Rs 49406 crore for the fiscal ending March 2011.

Funds mobilized from 157 newly launched schemes in March stood at Rs 36361 crore, out of which Rs 36254 crore came from 153 close ended income funds. The number of Fixed Maturity Plans (FMPs) launched during March was higher than other months during the fiscal as investors look to invest into this product to benefit from indexation. Axis Income Fund an open ended income fund mobilized Rs 39 crore. Canara Robeco Gold Exchange Traded Fund and Motilal Oswal MOSt Shares Gold ETF (open ended Gold ETF) mobilized Rs 42 crore. SBI Tax Advantage Fund - Series II, a close ended ELSS mobilized Rs 26 crore.