MF industry assets breach Rs8 lakh crore-mark in May

The industry's total assets under management grew by Rs34,393.67 crore, or 4.47%, in May

The assets under management (AUM) of the mutual fund industry grew by over 4% in May to cross the Rs8 lakh-crore mark and attain a six-month high, reports PTI.

The industry's AUM grew by Rs34,393.67 crore, or 4.47%, in May. The combined AUM of the 37 fund houses stood at Rs8,03,559.06 crore.

The last time the industry saw this record level of AUM was in November, when the assets hit an all-time high of Rs8.07 lakh crore, data by the Association of Mutual Funds in India (AMFI) showed.

Over May, Reliance MF, the largest fund house, saw an addition of Rs7,154 crore to its assets at Rs1.19 lakh crore.

After a gap of six months, the assets of HDFC MF breached the Rs1 lakh crore-mark in May. By the end of May, AUM of HDFC had increased by Rs7,160.53 crore to Rs1,01,863.31 crore, becoming the second fund house to manage assets of over Rs1 trillion.

Third-largest fund house ICICI Prudential MF saw its assets rising by Rs4,674.30 crore to Rs87,709.81 crore.

"The funds, which were pulled out in March, were re-infused in May. Also, short-term and ultra short-term funds saw hefty inflows, which propelled MF industry assets," Kotak Mutual Fund (fixed income and products) head Lakshmi Iyer said.

However, UTI MF bucked the trend and saw a decline of Rs840 crore from its assets to Rs78,617.15 crore during May.

During May, the Sensex dropped 3.5% as world equities wobbled on concerns over a debt crisis in the Eurozone. Analysts said that although inflow was not there in equity schemes, debt funds continued to witness investment interest.

Over the month, L&T MF added Rs1,045 crore to its assets, with May being the second consecutive month of rise. At the end of May, the AUM of L&T MF breached the Rs5,000-crore-mark to Rs5,170.69 crore.

During May, the assets of Kotak MF rose by Rs6,914 crore while Birla Sun Life MF saw its AUM increasing by Rs4,319 crore.

The other fund houses that saw their AUM rise in May included IDFC MF, Edelweiss MF, Franklin Templeton MF and Tata MF.

Of the 37 fund houses in the country, about 15 saw an erosion in AUM. This included LIC MF, whose assets fell by Rs1,544 crore to Rs 38,963 crore, and JP Morgan MF, which saw a decline of Rs330 crore to Rs3,785 crore.

Others that saw a decline in their assets included HSBC MF, Deutsche MF, Mirae Asset MF and SBI MF.


Sikozy Realtors buys 24,000 sq ft plot at Karjat in Maharashtra

Mumbai-based Sikozy Realtors Ltd, formerly Griffin Chemicals Ltd, said it bought 24,000 sq ft of vacant plot at Karjat, in Maharashtra. No financial details were provided.

The construction work for the residential flats on the acquired land will start by the August, 2010, it said in a filing.

On Wednesday, Sikozy Realtors ended 4.3% down at Rs41 on the Bombay Stock Exchange, while the benchmark Sensex closed 1% up at 16,741 points.


Infotech Enterprises signs long term agreement with Norway-based Seawell

Engineering services and technology solutions provider Infotech Enterprises Ltd said it signed a long-term master service agreement with Seawell AS of Norway to provide engineering support services. No financial details of the agreement were provided.

This agreement with Infotech will enable Seawell to further expand its engineering capacity to improve competitiveness. Seawell Facility Engineering Centre at Infotech Enterprises' Manikonda facility in Hyderabad was inaugurated today.

The agreement will offer Seawell's Drilling Facility Engineering (DFE) increased flexibility and the ability to execute more projects. Seawell would have a dedicated group of engineers based in India including key representatives from Seawell that will be responsible for managing the agreement and interfacing with global resource of DFE, the company said in a regulatory filing.

On Wednesday, Infotech Enterprises' shares ended 0.04% up at Rs370 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.02% up at 16,741 points.


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