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MFs’ average AUM falls 8.9 per cent in April-June, Franklin worst hit


New Delhi: The average assets under management (AUM) of Franklin Templeton Mutual Fund declined sharply by 31.4 per cent in the April-June quarter, even as the average AUM of the entire mutual fund industry declined by 8.9 per cent during this period, according to figures released by the Association of Mutual Funds in India (AMFI).

The average AUM of the industry declined from Rs 27,03,675 crore during the January-March quarter to Rs 24,62,769 crore.

Franklin Templeton was the worst hit, accounting for over 15 per cent of this Rs 2.4 lakh crore decline. Its average AUM dropped sharply by Rs 36,514 crore during the quarter. While some of this decline was due to the fall in equity markets, the beleaguered fund house has also witnessed outflows after it suddenly wound up six debt funds in April.

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Some other big fund houses did not see as big a drop in their assets. Assets of the largest fund house, SBI Mutual Fund, fell only 2.46 per cent. The second biggest fund house HDFC Mutual Fund saw a 3.68 per cent decline while third largest AMC, ICICI Prudential Mutual Fund saw its AUM decline 6.97 per cent. Analysts say the outflows from Franklin Templeton and other AMCs hit by defaults and downgrades seem to have found their way into these fund houses.

Only three mutual funds were able to increase their average AUM during the April-Jun quarter. PPFAS Mutual Fund saw its average AUM rise 15 per cent from Rs 3,137 crore to Rs 3,601 crore. Newcomers ITI Mutual Fund and the government-owned IIFCL Mutual Fund also saw their assets increase.





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