Mutual funds lose Rs16,000 crore in 2011; HDFC MF remains on top

As per the latest quarterly data released by AMFI, the cumulative average Assets Under Management of all fund houses stood at about Rs6,87,640 crore in the last quarter of 2011, a decline of Rs16,040 crore from a total of Rs7,03,680 crore in the first quarter of 2011

New Delhi: The mutual fund industry took a hit of more than Rs16,000 crore on its asset size during 2011, even as the newly-crowned market leader HDFC MF grew in size and consolidated its top position, reports PTI.

As per the latest quarterly data released by Association of Mutual Funds in India (AMFI), the cumulative average Assets Under Management (AUM) of all fund houses stood at about Rs6,87,640 crore in the last quarter of 2011.

This marked a decline of Rs16,040 crore from a total of Rs7,03,680 crore in the first quarter or January-March period of 2011.

Experts attributed the fall to the sharp losses in the stock markets, as also to the withdrawals by investors. The funds typically collect money from investors to invest in various asset classes including stocks and debt securities.

The loss was even larger for the cumulative asset base of the top five fund houses (HDFC, Reliance, ICICI Pru, Birla Sunlife and UTI Mutual Funds), as their total average AUM declined by Rs31,741 crore in the same period to end the year at Rs3,60,733.14 crore.

At the end of 2011, HDFC Mutual Fund retained its leadership position with total average AUM of Rs88,737.07 crore. It marked an increase of Rs2,455 crore from the levels in the first quarter of 2011.

HDFC MF was the only one among top five fund houses to register an increase in this period, as the remaining four saw their AUMs decline.

Reliance MF's average AUM dipped by Rs17,417 crore to Rs84,300.35 crore, while that of ICICI Prudential MF dipped by Rs4,080 crore to Rs 69,472.08 crore.

Birla Sunlife MF’s average AUM dipped by Rs3,327 crore to Rs 60,406.30 crore, while the decline was larger at Rs9,371 core for UTI MF, whose average AUM stood at Rs57,817.34 crore in the October-December quarter of 2011.

At the end of 2011, there were a total of 44 fund houses in the country, as against 42 in the first quarter.

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BSE rejigs mid-cap, small-cap indices

A total of eight new stocks have been included in BSE Mid-cap index, while 20 existing ones would move out. In the BSE Small-cap index, the exchange would include 42 new scrips and exclude 40 existing ones. The changes will come into effect from 9th January

Mumbai: The Bombay Stock Exchange (BSE) on Wednesday announced changes in its indices for the mid-cap and small-cap segments, which will come into effect from 9th January, reports PTI.

A total of eight new stocks have been included in BSE Mid-cap index, while 20 existing ones would move out. In the BSE Small-cap index, the exchange would include 42 new scrips and exclude 40 existing ones, according to a BSE statement.

Those joining the mid-cap index include Suzlon Energy, Unitech, Jindal Saw, Tata Coffee, Indiabulls Real Estate, Areva T&D India and Bombay Dyeing & Mfg Co.

On the other hand, companies like GlaxoSmithKline Consumer Healthcare, Gujarat NRE Coke, HCL Infosystems, Orchid Chemicals & Pharmaceuticals, SKS Microfinance and Network 18 Media & Investments have been excluded from the Mid-cap index.

Suven Life Sciences, Zenith Infotech, Hindustan Motors are among those being excluded from the BSE Small-cap index.

Those being included in the Small-cap index include Essar Shipping, Balrampur Chini Mills, S Kumars Nationwide, Sujana Towers and Jyothy Laboratories.

In addition, the BSE has included Emami and Gujarat State Fertilizers & Chemicals Ltd in the BSE TASIS Shariah 50, as part of its periodic review.

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TCS adds 200 clients on its SME platform iON

Tata Group Chairman Ratan Tata had launched the product solutions line christened iON early last year which uses cloud computing technology to deliver on-demand services to small and medium businesses.

The country's largest software exporter Tata Consultancy Services (TCS) has added 200 customers in its cloud-based small business line so far, a top official has said.
 

"We have added 200 clients till now and the response is better than what we had initially projected," the city-headquartered company's chief financial officer (CFO) S Mahalingam told reporters.  
 
Tata Group chairman Ratan Tata had launched the product solutions line christened iON early last year which uses cloud computing technology to deliver on-demand services to small and medium businesses, which are otherwise not serviced by a large company like TCS.
 
After launching, TCS had said that it targets to add 1,000 clients by the end of 2011 and has been stressing that though the product line will not contribute significantly to the company's topline to start with, its contributions will increase with time. It had said it expects revenues from the product to cross the USD 1 billion mark in five years.
 
In the late afternoon, TCS was trading at around Rs1,174.40 per share on the Bombay Stock Exchange, 1.86% down from the previous close.

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