Experts attribute this to volatility in debt market and RBI’s unexpected rate hike.
The AAUM of the mutual fund industry declined by 4.5% having fallen from Rs. 8,52,662 crore in April-June 2013 to 8,14,267 crore inJuly-September 2013, shows the quarterly data released recently by AMFI.
Deepak Chatterjee, MD, SBI MF attributes this decline to volatility in short-term interest rate during the second quarter. According to him, “Investors pulled out their money of liquid funds and debt funds resulting in downfall of industry’s AAUM. However, we are optimistic about recovery in debt segment in the coming months.”
Debashish Mallick, MD & CEO, IDBI MF seconded the view and says that many people had lost faith in debt products after the July 16th crash and redeemed their investments. Also, RBI’s unexpected rate hike and volatility in rupee have compounded the problem
Almost all the major fund houses have recorded a downfall in their AAUM for the quarter ended September.
Among the top 10 fund houses in terms of AAUM, ICICI Prudential MF, UTI, Kotak Mahindra and DSP BlackRock saw large outflows in percentage terms while Franklin Templeton and IDFC saw an increase of 4.7% and 1.5% respectively.
