Mutual Fund industry's AAUM up 3% in August

The Indian mutual fund industry had a better August with the average assets under management (AAUM) of the industry growing by a respectable 3.30%.

The AAUM of the Indian Mutual Fund industry increased to Rs6.87 lakh crores in August from Rs6.65 lakh crore in July, according to data published by the Association of Mutual Funds in India (Amfi).



The mutual fund industry saw decline in its assets in June and July as banks pulled out money under tight liquidity conditions emanating from the outflows towards 3G and BWA auctions.

HDFC has recorded the highest growth in AAUM at 6.5%, followed by Birla Sun Life at 4.36%, UTI at 3.16%, and Reliance at 2.28%.

Of the 43 fund houses, around 10 saw a drop in their AAUMs.

Reliance Mutual Fund house continues to be the biggest fund house in the country with an AUM of Rs 1.04 lakh crore. HDFC is the second biggest with an AUM of Rs90,178 crore.

AUM of ICICI Prudential MF rose marginally by 0.08% to Rs68,768 crore in August while that for Birla Sun Life MF rose by 4.36% to over Rs64,200 crore.

Birla Sun Life has moved a notch up to the fourth position, pushing UTI to number five. Franklin Templeton has moved up to the sixth position, pushing down SBI Asset Management to a seventh place.

DSP Blackrock has also moved to the ninth position pushing LIC MF down to number 10.

The rise in the AAUM has come amid concerns of a possible fall in valuations of the liquid plus category of MF schemes after SEBI announced new valuation norms came into effect last month.

The new valuation norms require the ultra short-term MF schemes to value their debt securities with a maturity of more than 91 days to marked-to-market. However, these schemes have actually reported an average increase of around 0.4% in their net asset values (NAV) for August.