Net outflows from growth schemes

S. Vaidya Nathan

MUTUAL funds have seen a net outflow of Rs 2,185 crore under the growth schemes in the three months between July and September, according to the basic statistics put out by the Association of Mutual Funds of India.

The sales for equity-oriented schemes was Rs 3,728 crore and redemption, Rs 5,913 crore. This is the one of the highest levels of redemption from equity-oriented schemes in any quarter in the last two years. This clearly points to investors pulling out funds in the wake of the sharp decline in the stock prices.

Mutual funds, as a whole, have had net inflows of Rs 198 crore this quarter. The bulk of the monies have come through liquid/money market funds and balanced funds. Of the inflows via the balanced funds route, close to Rs 700 crore is on account of re-investment of dividend under the flagship fund of the Unit Trust of India, US-64.

Liquid funds/money market funds had a share of close to 42 per cent in sales, and 34 per cent in redemption. Growth funds had a 18.7 per cent share in sales and 27.5 per cent in repurchases, while income funds had 24 per cent in both. The total sales by mutual funds was Rs 19,878 crore, and the redemptions were Rs 19,680 crore. There was no assured return product during the quarter.

The assets under management as of September 30, were Rs 97,462 crore. Of this, close to 26 per cent was accounted for by income schemes, 22 per cent by assured return schemes, 22.8 per cent by equity schemes and 233 per cent by balanced funds. The rest was accounted for by liquid/gilt/money market funds. Open-end funds had assets worth Rs 59,602 crore under management, while close-end funds managed assets worth Rs 37,860 crore.

Of the assets under management, the UTI had a 66.2 per cent share while bank-sponsored and institution-sponsored funds had 3.9 per cent and 3.0 per cent respectively. The bank-sponsored funds saw a sharp decline of 37.8 per cent of assets compared to levels a year ago. Private sector funds have a 27 per cent share.

The assets under management of the UTI was Rs 64,521 crore (up 2.2 per cent over the last year); bank-sponsored funds -- Rs 3,819 crore (down 37.8 per cent); institution-sponsored funds -- Rs 2,912 crore (up 8.2 per cent); and private sector funds -- Rs 26,210 crore (up 93.5 per cent), as of September 30. Overall, the assets under management show a rise of 14 per cent compared to the levels that prevailed on September 30, 1999 (Rs 85,487 crores).

Click here for Table

Bluechip dividend: Kothari Pioneer Mutual Fund announced a dividend of 25 per cent (Rs 2.50 per unit, with a face value of Rs 10). The dividend is tax-free in the hands of the investors, and the fund does not have to pay any tax as it is an open-end scheme with an exposure of over 50 per cent of net assets to equities.

The dividend is payable to investors in the Dividend Option of Bluechip Fund as on the record date of November 10. The NAV of the dividend plan as of this date was Rs 16.85 per unit. The ex-dividend date for the scheme to re-open for sale and repurchase was November 13. An exit load of 0.75 per cent will be levied for purchases made in the Dividend Plan between October 31 and November 10, and redeemed before January 31, 2001.

Zurich India High Interest: Zurich India Mutual Fund has announced a dividend of 2 per cent (Rs 0.20 per unit of Rs 10) for its Zurich India High Interest Fund. The dividend is tax-free for investors. The fund had, earlier this year, declared dividends of 2.50 per cent in January, 2 per cent in March and 2.7 per cent in May.

Zurich MF through NSE: Zurich India Mutual Fund has decided to distribute its units using the trading platform of the National Stock Exchange. The fund would use the automated trading, clearing and settlement system of the NSE for sale and repurchase of units. This would be initially available for the fund's five open-end equity schemes. It would be later extended to the other funds.

As a consequence, investors need not go to the fund to buy and sell units. The trades would be settled by the NSE clearing company, the National Securities Clearing Corporation, on a T+5 (five days after the trading day) basis. In case of purchase of units, the unit would be credited in the demat account of investors, and in the case of a sale transaction, the sale proceeds would be distributed by the broker. Investors can buy and sell units at NAV-based prices through any of the close-to-3,000 NSE trading terminals in 350 cities.

Click here for Table

US-64 prices: The Unit Trust of India has fixed the sale price and repurchase price for US-64 at Rs 14 per unit and Rs 13.70 per unit respectively for October. These prices represent a 10-paise rise over the October prices.