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BL Research Bureau

A COMBINATION of redemption pressures, sluggish markets and an ownership change in the case of Zurich India Mutual Fund have led to a shrinkage in the asset base of private sector mutual funds by about Rs 5,500 crore.

Close to 18 per cent is accounted for by Prudential ICICI Mutual Fund whose net assets have declined from Rs 10,176 crore to Rs 9,068 crore. Templeton, HDFC Mutual and Birla SunLife have all suffered declines ranging from Rs 400 crore to Rs 600 crore.

As a percentage of assets under management, Zurich India Mutual Fund has seen its assets down by about 20 per cent to Rs 2,686 crore from Rs 3,319 crore. The fund has been acquired by HDFC Mutual Fund.

In the pecking order of private sector funds, HDFC-Zurich is ahead of the pack with combined assets of Rs 9,168 crore closely followed by Prudential ICICI at Rs 9,068 crore and Templeton at Rs 8,792 crore.

UTI Mutual Fund has assets of Rs 13,516 crore under management. The following are the other key pointers from the March report of the Association of Mutual Funds of India (AMFI):

The total assets under management of all funds were at Rs 79,464 crore. Private sector funds accounted for 70 per cent of these assets. UTI Mutual Fund has a 17 per cent share of the pie.

Total sales in March 2003 were Rs 35,556 crore and redemption Rs 41,527 crore. The net outflows were Rs 5,971 crore.

For fiscal 2002-03, sales were Rs 3,14,673 crore and redemptions Rs 3,01,225 crore. Net inflows for the year were Rs 13,448 crore.

97 per cent of sales in March 2003 were accounted for by income schemes.

Short-term liquid funds saw outflows of Rs 2,087 crore and regular income schemes Rs 3,758 crore. Equity schemes also witnessed outflows of Rs 413 crore.

Of the assets under management at the end of March 2003, income schemes accounted for 57.5 per cent, equity schemes 12.4 per cent, short-term income schemes 22. per cent and balanced and tax schemes for the rest.

Reliance MIP dividend: Reliance Capital Mutual Fund has announced a dividend of 0.701 per cent (Rs 0.0701 per unit) for the Monthly Dividend Option of the Reliance Monthly Income Plan. The dividend is for the period between March 21 and April 21, 2003. The record date is April 21.

Sun F&C dividends: Sun F&C Mutual Fund has announced a dividend of 0.45 per cent (Rs 0.0456 per unit) for the Sun F&C Monthly Fixed Maturity Maturity Plan 1. This is for the monthly series of the Sun F&C Fixed Maturity Series. The record date is April 17.

Kotak STP dividend: Kotak Mahindra Mutual Fund has announced a dividend of 1.358 per cent for K-Bond (Short term Plan - STP). The record date is April 16.

Franklin SIPs: Franklin Templeton India Mutual Fund has announced that it will launch a series of schemes under Franklin India Strategic Investment Plans. There will be 12 series in a year. Each series will have one or more plans with different asset allocation patterns and maturities.

The first of these plans have been slated for March-April 2003. The details of the launch schedule, duration, maturity dates and plans offered are available on the fund's Web site : www.templetonindia.com.

US-64 prices: The repurchase price for unit holdings of up to 5,000 units (enhanced from 3,000 units) is Rs 11.80 per unit in April under the Special Liquidity Package.

The package was offered from August 2001 at Rs 10 per unit and is due to end in May 2003 at Rs 12 per unit.

The price for December was Rs 11.50 per unit. For holdings in excess of 5,000 units, a repurchase facility linked to the NAV is available from January 2, 2001.

For such holdings, an assured repurchase price of Rs 10 per unit or NAV, whichever is higher, is available on May 31, 2003, if the units are held till then.

If redeemed earlier, the redemption will be at NAV-based prices if carried out before May 31, 2003. For less than 5,000 units, the assured repurchase price for May 2003 is Rs 12 per unit.

These special repurchase prices will also be available beyond May 2003.

Investors have the option of receiving government of India-backed bonds with a coupon of 6.75 per cent per annum and a tenure of five years.

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