Partner Channels: Auctions | Auto | Bill Pay | IT Education | Jobs | Lifestyle | Technology | Travel
April 17, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Weather | Wedding | Women Partner Channels: Auctions | Auto | Bill Pay | IT Education | Jobs | Lifestyle | Technology | Travel |
||
|
|
||
|
Home >
Money > Business Headlines > Report April 17, 2001 |
Feedback
|
|
|
Asset value of MFs plunges by Rs 220 billion during 2000-01Ashwin Punnen & Janaki Krishnan The meltdown in the market has taken its toll on the mutual fund industry, which saw a drain of Rs 220 billion on the assets under management during 2000-01. According to provisional figures compiled by the Association of Mutual Fund Industry, the total assets under the management of mutual funds came down by 19 per cent from Rs 1130 billion in March 2000 to Rs 910 billion as on March 31, 2001. This is a substantial drop from last month, when the assets under management were Rs 1024.35 billion. This is despite the inflow of an estimated Rs 90,000 in the last fiscal. Sources said all the mutual funds had been hit by the general erosion in the value of shares, especially tech stocks, and drop in market capitalisation. The debt funds, however, are managing well, primarily due to the stability in this segment. SK Mitra, head of Birla Global Finance, said 30-40 per cent of mutual fund assets were in equity funds and the steep depreciation in IT stocks would definitely have eroded net asset values. "But the other side of this is that this is the right time for investors to put in their money, not in one-time chunks but in phases, over a period of time." According to industry sources, investors who entered the various schemes at high net asset values will be severely hit. No redemption was taking place because of the low repurchase prices and investors were waiting for the market to go up again before trying to cash out, the sources said. Explaining the inflows into the sector, industry sources said most of the funds inflow during March 2001 could be attributed to corporate investors taking their last chance at dividend stripping. Retail investors, left with no other investment alternative, were also flocking to mutual fund schemes, though most of the money was finding its way into debt and balanced schemes, they said. Mutual funds witnessed inflow of funds in the last two years after the government announced several tax sops. The cumulative inflow into mutual funds this year till February stood at Rs 827.37 billion. Powered by YOU MAY ALSO WANT TO READ:
|
||||
