MFs see record growth in July

3 Aug 2007, 0320 hrs IST , TNN

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MUMBAI: During July the mutual fund industry grew its assets by over Rs 86,100 crore - its highest ever
monthly net inflows - to touching distance of the Rs 5 lakh crore mark.

Incidentally, July was also the first month when the government made the use of Permanent Account
Number (PAN), compulsory for all mutual fund related transactions. A handful of factors helped the fund
industry beat the PAN-related problems during the first month of introduction, but top industry officials
said the same factors are unlikely to be repeated.

Record-low call rates, which hovered below 1 percent for all of last month, helped funds witness large
inflows into liquid funds. In addition, liquid funds also witnessed part of the money raised in a clutch of
mega-size public offers in June finding its way into liquid schemes, fund managers said.

In addition, the stock market also rallied in July helping equity assets swell while some new fund offers
also witnessed substantial inflows.

As of July-end, the total asset under management (AUM) of the fund industry was Rs 4,86,513 crore, up
21.5 percent from Rs 4,00,333 crore a month ago, data released by the Association of Mutual Funds in
India (AMFI) showed. On a year-on-year basis, the industry's growth in assets have been 86 percent, up
from Rs 2.64 lakh crore as of July 2006.

Last month, Reliance MF raised about Rs 2,700 crore through its new scheme, Reliance Equity Advantage
Fund while Franklin Templeton MF, through its NFO for High Growth Companies Fund mobilized about
Rs 1,500 crore. During the same month, despite a 541-points fall on July 27, the sensex was up a little over
6 percent, including the index crossing the 15K mark for the first time on July 6.

Reliance MF maintained its top position in terms of AUM, with Rs 66,420 crore, up from Rs 59,857 crore a
month ago.
ICICI Prudential retained the second slot with AUM now at Rs 48,689 crore, while UTI MF too retained
the third rank with AUM at Rs 42,548 crore as of July end. In the AUM league table, HDFC MF ranks
fourth with Rs 40,153 crore, followed by Franklin Templeton MF with Rs 32,214 crore.

In July Lotus India MF and DBS Chola MF, crossed the Rs 5,000 crore mark with the former now at Rs
7,248 crore and the latter at Rs 5,069 crore.