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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (10069)	12/17/1999 11:55:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Private Mutual Funds garner record inflows of Rs 2,049 crore ($476 mil) in Nov (Friday, December 17, 1999) Our Markets Bureau in Mumbai Private mutual funds witnessed the highest net inflows in a single month during November at Rs 2,049 crore. They continued to dominate the overall industry accounting for 78 per cent of the total net inflows of Rs 2,695 crore ($627 million) during the month. On the whole, it was a good month for all players in the sector with all of them recording positive inflows. Overall assets under management has gone up by Rs 5,356 crore ($1.2 billion) to Rs 92,303 crore ($21.5 billion) as on November 30, 1999. After witnessing a net outflow of funds during August and September, the Unit Trust of India recorded a net inflow of Rs 422 crore. The trust had witnessed heavy inflows during October, but that was largely on account of the Monthly Income Plan (MIP) that opened for subscription during the period. The higher inflows into private funds during November could also be attributed to the fact that as many as seven new schemes were launched. Altogether, the new plans brought in sales of Rs 358 crore. After discounting this number, private funds still managed an inflow of Rs 1,750 crore, the highest in a single month. Private funds now manage Rs 17,129 crore ($4 billion) worth of assets. As on December 1998, the share of private mutual funds was about 0.8 per cent. Another positive factor has been the increasing acceptance of equity-linked schemes by investors. Growth plans recorded a net inflow of Rs 386 crore as compared with Rs 373 crore, which was the net inflow into pure debt schemes. Liquid schemes (a mix of short-term debt and money market instruments) witnessed a net inflow of Rs 629 crore. According to industry sources, there is a shift in the mindset of the mutual fund investors investing in equity plans. Earlier, whenever the market weakened, most investors would press for redemptions. However, now investors have been making fresh investments in a declining market. "Gradually investors are getting a feel of what an equity scheme is all about and how it functions," said a marketing head at a private mutual fund. "This is a positive trend for the mutual fund industry as it will bring in better quality assets," he added. business-standard.com