Millennium Post

MFs mobilise over Rs 1.5 trillion from investors in 2012-13

Investors have put in more than Rs 1.5 lakh crore in various mutual funds in the first five months of the current fiscal, as against cumulative net outflow of over Rs 70,000 crore in the previous two financial years.

A revival in the stock market and various reform measures being undertaken by the government and regulator SEBI may help the mutual fund industry mobilise further funds in the coming months, say experts.

As per the latest data available with SEBI, there was a net inflow of Rs 1,53,781 crore between April and August 2012, as against fund mobilisation of Rs 1.24 lakh crore in the corresponding period last fiscal.

However, there was a net outflow of over Rs 20,000 in the entire 2011-12, while a net amount of nearly Rs 50,000 crore moved out of the mutual funds' kitty during the previous fiscal 2010-11.

Prior to that, mutual funds had mobilised Rs 83,000 crore in 2009-10, SEBI data shows.

At gross level, the mutual funds mobilised a total amount of over Rs 30.4 lakh crore in the first five months of the current fiscal, while there were redemption worth Rs 28.9 lakh crore as well – resulting into net inflow of about Rs 1.54 lakh crore.

This significant level of fund mobilisation has also helped the total asset under management of mutual funds to grow to Rs 7.5 lakh crore as on 31 August 2012.

Mutual funds pool in money from many investors and invest it further.


Banks seem to be taking away all the cream when it comes to earning commissions from sale of mutual funds, as there are as many as seven banks among the top-ten mutual fund distributors in terms of commissions paid to them. As per the latest disclosure of commission and expenses paid by various fund houses to their distributors, HSBC, HDFC Bank and Citibank top the chart for the last fiscal ended 31 March 2012. Besides, there are four other banks among the top-ten commission earners – Standard Chartered Bank, Axis Bank, ICICI Bank and Kotak Mahindra Bank.
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