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UTI regains 50% market share

P Vaidyanathan Iyer

Unit Trust of India has recovered some market share in the last two months of 2001-02. For the financial year ended March 31, 2002, UTI's market share, based on its asset base, has again crossed the 50 per cent mark.

UTI's total assets stood at Rs 514.34 billion for the period April 2001-March 2002 compared to the total assets under management of the mutual fund industry at Rs 1,005.94 billion, according to the Association of Mutual Funds of India. In January this year, UTI's market share had dipped below 50 per cent for the first time.

Analysts attributed UTI's recovery partly to the rebound in the stock markets. Between January and March, the Sensex increased by 170 points.

The Centre for Monitoring Indian Economy had in its review for March 2002 pointed out that UTI, which commanded as much as 63 per cent of the industry's assets in January 2001, lost almost 15 per cent market share to private funds by January 2002. UTI's assets of Rs 511.52 billion in January accounted for 49 per cent.

In fact, AMFI's data reveals that the total sales from all schemes between April 2001 and March 2002 was higher by over 75 per cent at Rs 1,645.23 billion compared to Rs 929.57 billion during the corresponding period last year. Redemptions, too, were higher at Rs 1,573.48 billion, up almost 88 per cent against Rs 838.29 billion in the previous year.

The market share of private funds stood at less than 41 per cent during the April 2001-March 2002 period. The asset base of the private funds for the year was Rs 409.56 billion.

In terms of type of schemes, income funds led with total assets under management of Rs 335.87 billion (47 per cent) among all categories of open-ended funds. Balanced funds were a distant second with an asset base as on March 31, 2002 at Rs 167.20 billion.

The assured-return schemes had an asset size of Rs 176.79 billion.

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