Investing Trends

Mumbai, Jun 3 In the thick of a volatile equity market, the plus under direction (AUM) of the common monetary fund (MF) industry gained 5.36% Oregon Rs 30,576.72 crore in May compared to April. Fund houses, mobilising resources through liquid finances and fixed adulthood program (FMP's) mainly contributed for the growing of AUM, monetary fund troughs said.

According to Association of Mutual Funds in Republic Of India (Amfi), the AUM was Rs 5,69,948.71 crore in April which increased to Rs 6,00,525.43 crore in May.

Commenting on this, A Balasubramanium, CIO, Birla Sun Life medium frequency said, "The major ground for the growing in the AUM of medium frequency industry is owed to the debt finances which have got got grown through the liquid finances and Fixed Adulthood Plan (FMP's)."

The top five monetary fund houses have maintained their places in the pecking order of medium frequency industry. Reliance medium frequency stays at the top in the ladder. Its AUM increased by 2.12% Oregon 2,044.52 crore at Rs 98,430.93 crore.

ICICI Prudential medium frequency ranked 2nd which gained 6.02% Oregon Rs 3,351.49 crore at Rs 59,060.02 crore. The state owned giant UTI medium frequency also increased its AUM by 4% Oregon Rs 2,102.28 crore at Rs 54,651.68 crore.

The 4th place holder HDFC MF's AUM jumped 8.38% Oregon Rs 4,336.47 crore at Rs 56,107.29 crore. Birla Sun Life medium frequency gained 4.9% Oregon Rs 1,934 crore at Rs 41,423.42 crore maintaining its 5th position.

The medium frequency industry is of the position that the volatility in the equity marketplace was comparatively less in the calendar month of May which have helped the monetary fund houses to heighten their AUMs.

Assets under direction (AUM) of exchange traded finances (ETFs) rose by over nine modern times to Rs 8,100 crore at the end of October 2007, as compared to Rs 869 crore in March 2006.

A majority of this rise is accounted for Benchmark Depository Financial Institution BeEs Fund, whose AUM have zoomed to Rs 7,005 crore. Depository Financial Institution bees tracks the CNX Depository Financial Institution Index.

Experts state a big ball of this rise is owed to the money pumped in by foreign institutional investors (FIIs) as they are using this path to purchase into banking pillory in which they cannot put directly owed to the 20 per cent ceiling on FII investments.

Also in the last 18 months, the assets of ETFs surged on the dorsum of the country's economical growing story. Krishnan Sitaraman, head, monetary fund services and fixed income research, CRISIL, said, "The bull-run inch the Indian marketplace have led to renewed involvement and participation. This have also led to higher valuations, increased volatility and broadening of the stock market, resulting in ETFs and index finances gaining popularity."

ETFs are handbaskets of securities that are traded, like individual stocks, on an exchange. Unlike regular open-ended common funds, ETFs can be bought and sold throughout the trading twenty-four hours like stocks. They are different from common finances in the sense that their units of measurement are not sold to the public for cash.

Instead, the plus direction company (AMC) that patrons the ETF purchases the shares of companies comprising the index from assorted classes of investors such as as authorised participants, big investors and institutions.

In turn, it publishes them a big block of ETF units. Since dividend may have got accumulated for the pillory at any point in time, a hard cash constituent to that extent is also taken from such as investors.

In October, the Greater Bombay Stock Exchange's Sensex and the National Stock Exchange's Bang-Up gained 14.73 per cent and 17.51 per cent, respectively.

Nifty BeES, the country's maiden exchange-traded fund, was launched in January 2002 by Benchmark Common Fund that pulls off only ETFs.

Currently, domestic common monetary fund industry have three gold ETFs. Gold ETFs, like other ETFs, are listed on the stock exchanges and path the domestic terms of gold.

The sum assets of the common monetary fund industry crossed the Rs 5.5 trillion grade last calendar month as leading participants such as as Reliance Mutual Fund, ICICI Prudential, UTI Mutual Fund and HDFC Mutual Fund maintained their several places at the top.

The assets under direction (AUM) of North American Indian common monetary monetary fund industry grew by a humongous Rs 79,750.44 crore, or 16.71 per cent, in October, courtesy the rise stock marketplace and new launches by respective fund houses during the period.

The AUM stood at Rs 5,56,729.69 crore in October, up from Rs 4,76,979.25 crore in the former month.

A cardinal entrant into the top five listing is Birla Sun Life Mutual Fund, promoted by the Aditya Birla Group, which roped in Ajay Srinivasan from ICICI Prudential a couple of calendar months back to head its fiscal services business.

The assets of Birla Sun Life medium frequency rose by nearly 21 per cent last calendar month to Rs 33,706.82 crore, overtaking John Hope Franklin Templeton (Rs 32,041.84 crore) for the 5th position.

Anil Ambani-controlled Reliance Mutual Fund maintained the figure 1 place with assets of Rs 79,973.83 crore, up 13.53 per cent from September.

ICICI Prudential retained the figure two slot, seeing its AUM in October rising by a modest 11.59 per cent to Rs 56,212.84 crore.

UTI Mutual Fund, owned equally by Life Insurance Corporation and three state-owned banks, kept its 3rd slot. It's assets grew by 15 per cent to Rs 51,752.84 crore, which was faster than the growing registered by Reliance medium frequency and ICICI Prudential.

HDFC Mutual Fund maintained the 4th place with assets of Rs 47,745.09 crore in October, up 15.51 per cent from the former month.

SBI Mutual Fund saw a 12 per cent addition in its AUM to Rs 26,593.57 crore, from the former month's Rs 23,738.68 crore.

Several monetary monetary fund houses including Tata Mutual Fund and Birla Sun Life also raised finances through new fund offerings last month.

The benchmark Sensex rose by nearly 15 per cent in October, propelling the value of common finances assets.