New Delhi: Huge redemption pressure in the mutual fund industry has received more authoritative colour as the cumulative assets under management of the country's various MF houses tripped by nearly Rs 10,000 crore within a month.
The sharp decline in the assets held by MFs comes on the back of heavy profit booking seen on the bourses over the past couple of months and jittery market sentiments that led to investors rushing to withdraw their money from various equity-linked mutual fund schemes.
According to the latest data available with the Association of Mutual Funds in India (AMFI), the total asset under management of all the funds, excluding the fund of funds (FoFs), plunged to Rs 2,65,870.86 crore in June, from Rs 2,75,948.89 crore a month ago.
However, the MF houses have been consistently denying any major redemption pressure even if the one-year returns across most of the equity schemes have more than halved from their higher levels in early May.
Out of the total 29 mutual funds, the assets under management (AUM) of 24 fund houses dropped from their month ago levels in June, which included the top MFs such as Prudential ICICI, UTI, Reliance and HDFC Mutual Fund, the AMFI data said.
LIC Mutual Fund, HSBC MF, Standard Chartered MF and Principal MF were the only five fund houses that witnessed an increase in their AUM during the month.
However, all the top five fund houses retained their respective positions in terms of their AUMs, with Prudential ICICI leading at the first position, followed by UTI, Reliance, HDFC Bank and Franklin Templeton MF.
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