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THE gap between UTI Mutual Fund and three of the larger private sector funds continues to narrow. HDFC Mutual (assets under management of Rs 12,421 crore at the end of July 2003), Prudential ICICI Mutual (Rs 13,107 crore) and Franklin Templeton (Rs 12,003 crore) continue to compete for second slot in the industry.

UTI Mutual stays at the top with assets of Rs 16,388 crore. HDFC Mutual and Franklin Templeton have been helped by the acquisition of Zurich and Pioneer ITI in making a quantum jump. The other key pointers from the numbers released by the Association of Mutual Funds of India (AMFI) for July are:

The assets under management of all mutual funds were Rs 1,12,841 crore. Private sector funds account for close to 74 per cent of all assets.

Inflows in July were Rs 43,361 crore and redemption at Rs 35,881 crore with net inflows of Rs 6,110 crore.

Inflows continue to seek income funds with 95 per cent going into such schemes. A similar pattern is discernible in redemptions as well, but on a lower base. The net inflows have been sizeable into income funds — long-term as well as short-term.

Equity funds have had net inflows of Rs 629 crore. But the scale of inflows and outflows jumped manifold compared to levels during this period last year. Inflows were Rs 1,954 crore and outflows Rs 1,225 crore.

At the end of July, 59 per cent of the assets under management were in income funds, 25 per cent in short term/liquid/gilt/money market funds and 13 per cent in equity funds. The rest were in balanced funds.

Alliance's view: Alliance Capital Mutual Fund has indicated that it has always accorded paramount importance to its fiduciary responsibilities to its investors and that it will continue to do so.

The fund's statement comes in the wake of the charges of insider trading charge as well as a couple of other counts against its former Chief Investment Officer, Mr Samir Arora.

The fund has indicated that it would discuss the order with the Securities and Exchange Board of India (SEBI) at the appropriate time, review the matter internally and work closely with SEBI to bring the matter to a rapid conclusion.

New management team: Following Mr Arora's exit , Alliance Capital has announced that the equity portfolios of the fund will be managed by Mr Dhawal Mehta and that portfolio management will not be affected by the exit of its former Chief Investment Officer. The fund will continue to adopt a team-oriented approach is the official stance on fund management style.

Alliance dividend: Alliance Capital Mutual Fund has announced a dividend of 25 per cent (Rs 2.5 per unit) for the Dividend Plan of Alliance Basic Industries Fund. The NAV of the dividend plan as of August 20, 2003 was Rs 18.53 per unit. Investors as of August 20 are eligible for the dividend, which is tax-free in the hands of investors.

Prima Plus dividend: Franklin Templeton Investments (India) has declared a dividend of 20 per cent for its open-end equity fund, Prima Plus. Investors in the Dividend Plan as of August 19 are eligible for the dividend

Reliance MIP dividend: Reliance Capital Mutual Fund has announced a dividend of Rs 0.0745 per unit for the Monthly Dividend Plan of Reliance Income Fund. The dividend is for the period between July 16 and August 16, 2003.

Mastershare book-closure: The books of Mastershare of UTI Mutual Fund will be closed between September 19 and September 25 for the purposes of dividend.

The board of trustees are likely to announce the rate of dividend on September 1. The dividend will this time be paid out to all holders — including those who have opted for the reinvestment option. The scheme is being converted into an open-end fund.

: Alliance Capital Mutual Fund has fixed August 29 as the record date for the Dividend Plan of Alliance Frontline Equity Fund.

HDFC Growth dividend: September 1 is the record date for the declaration of dividend for HDFC Growth Fund.

Birla MNC Fund: Birla SunLife Mutual Fund has fixed August 29 as the record date for dividend for the Birla MNC Fund.

JM Basic Fund: August 29 is the record date for dividend in JM Balanced Fund (Dividend and Growth Plan) and JM Basic Fund.

Kotak fund manager: Kotak Mahindra Mutual Fund has appointed Mr Rushabh Sheth as the head, equity funds, to takeover the fund management function from Mr Vetri Subramaniam.<137>

BL Research Bureau

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