The sharp rise in the industry share of bank-sponsored mutual funds and the drop in institution-sponsored mutual funds was due to the acquisition of IL&FS MF (institution) by UTI MF and the huge inflows seen in SBI MF. The industry share of predominately-foreign joint venture mutual funds rose while those that of predominately Indian joint venture witnessed a drop. None of the four predominately-Indian joint venture mutual funds witnessed inflows in Julyâ04
Going ahead, the performance of equity funds that move in tandem with the stock market would be the major trigger for investments in mutual fund. The governmentâs thrust on agriculture industry and mutual fundsâ initiatives to attract investors in the rural areas might lead to an increase in rural inflows in the coming months. Investments in Liquid funds and Floating rate bond funds would continue to corner better inflows from investors eyeing steady returns in an otherwise volatile debt market.
Â· During the month under review nearly 38% (10 funds) out of the 26 funds studied witnessed a drop in the asset base. Medium size funds namely LIC MF and JM MF were the only two fund houses that saw more than 10% dip in asset base. They also topped the list of funds with outflows.
Â· The top 5 fund houses retained their respective positions as in the previous month. However, Pru ICICI MF and HDFC MF figured among the top 5 funds that witnessed outflows with redemptions of Rs 302 crore and Rs 245 crore respectively.
Â· UTI MF on the back of the acquisition of IL&FS MF (around Rs 2000 crore) crossed the Rs 21000 crore milestone while SBI MF jumped into the league of Rs 6000 crore asset base with a net inflow of nearly 20%. SBI MF raised around Rs 450 crore through its newly launched Floating Rate Fund in Julyâ04.
Â· Templeton MF, Kotak MF, Standard Chartered MF, Morgan Stanley MF and Canbank MF not only amassed inflows for the second consecutive month but also posted higher growth rate in assets.
Â· On the contrary, JM MF has seen increased redemptions since Mayâ04 while Birla MF and LIC MF witnessed redemptions for second consecutive month.
Â· BoB MF leads the list of trend busters along with SBI MF, HSBC MF and ING Vysya MF that
witnessed comparatively higher inflows in Julyâ04 than the outflows seen in the preceding month.
Â· SBI MF jumped 3 slots ahead of its last month rank to enter the top 10 league at the 9th position dislodging Tata MF to the 12th position in Julyâ04. Subsequently, Kotak MF slipped one rank to the 10th position.