The BSE Sensex grew more than 4.5% growth during March. However, the assets under equity mutual funds rose by 3.8% when compared with the past month’s figure. The total average AUM of equity mutual funds stood at Rs210,451.8 crore for the month. On adjusting the net flows, the net rise in the assets stood at 4.7%. Dismal inflows in the funds chiefly due to SEBI’s entry load ban remained the main reason of the growth in the AUM lagging behind the indices’ performance.

Considering ONLY equity funds, 32 fund houses witnessed a growth in the AUM over the month. Bharti AXA Mutual Fund topped the chart with a 27.5% jump in equity assets, followed by Baroda Pioneer Mutual Fund, which registered a 9.2% rise in its assets. Benchmark Mutual Funds’ assets, on the other hand, saw the sharpest decline of 27.4% during the month. The other fund houses that saw a decline in their equity assets were: Shinsei Mutual Fund, JM Financial Mutual Fund, Escorts Mutual Fund and Religare Mutual Fund. The assets of the biggest equity asset holder, Reliance Mutual Fund, rose by 3.8% while the assets of the second largest asset holder, HDFC Mutual Fund, grew by 4.5% over the month.

This is a dismal rate of growth and many (most) mutual funds in the country are likely to be in the RED during the year – this growth rate is just not sufficient to support a few offices, ramp up of 2009, fixed overheads, etc.