Anil Ambani-promoted Reliance Mutual Fund — the number one mutual fund in the country in terms of assets under management — has added another feather to its cap. It has become the first mutual fund house in India whose AUM has topped the Rs 1 lakh crore-mark.
An official at Reliance Mutual Fund confirmed that the AUM has crossed the coveted milestone, but added that numbers to be released by the Association of Mutual Funds of India (Amfi) on Friday may not reflect the achievement. This is because Amfi figures take into consideration the average AUM for the whole month.
For the past year, Reliance’s AMC has been topping the AUM charts backed by strong inflows into equity schemes, as retail investors rushed to benefit from the booming stock market. Its Average Assets Under Management (AAUM) was in the order of Rs 90,938 crore for March, 2008. It also has one of the largest investor bases in the country with 66.87 lakh investors on its scrolls.
Only UTI AMC, a government-backed mutual fund which has been in operation for the past few decades, has a larger retail base.
Last month saw AUMs of most fund house grow since the hardening of the interest rate scenario and the possibility of higher yields attracted many investors towards debt offerings like FMPs.
Data on its website reveals that Reliance MF has a presence in 115 cities across the country. Its schemes are managed by Reliance Capital Asset Management, a subsidiary of Reliance Capital, which holds 93.37% of the paid-up capital of RCAM, the balance paid-up capital being held by minority shareholders. Reliance Capital is listed on the BSE and NSE.
Just a couple of months back, Reliance Mutual Fund announced one of the largest NFO collections ever when it collected around Rs 5,660 crore through its Reliance Natural Resources Fund. Incidentally, two years back, it was Reliance itself that had registered the biggest NFO in the Indian mutual fund history with Reliance Equity Fund. As per results announced by Reliance Capital, net profit of Reliance Capital Asset Management for financial year 2007-08 was at Rs 150 crore, an increase of 210 %.
Reliance Mutual Fund was one of the earliest private AMCs to be floated way back in 1995, after the government allowed new private players in the asset management space.