Fund's AUM was strong in the March quarter

Fund's AUM was strong in the March quarter

MUMBAI: The domestic mutual fund industry reported a significant increase in its assets under management (AUM) in the March 2021 quarter. Average assets under management rose 19 per cent to Rs 32.1 lakh crore in the March 2021 quarter from Rs 27.03 lakh crore in the March 2020 quarter. The average AUM in equities suffered a setback in the March 2020 quarter from a sell-out caused by the epidemic. 

However, if we compare the average AUM from the end of January 2020, there is an increase of 14 per cent and it has been Rs 28.2 lakh crore. Due to the strong growth in the market, assets increased. The benchmark Sensex rose nearly 70 per cent in FY 2021, the biggest year-over-year gain in 11 years. SBI MF managed to hold the first position. Its average assets under management stood at Rs 5.04 lakh crore in the March 2021 quarter, up 35 per cent year-on-year. This information came from data from industry body Amphi. 

The fund house has widened the gap in this matter from HDFC MF. The figures for both MFs were close to a year ago. Currently, SBI MF's AUM is about 20% higher than HDFC MF. Among the 10 leading companies, Axis MF recorded the highest growth in average AUM and rose 42 per cent to Rs 1.96 lakh crore in the January-March quarter.

A senior official of SBI MF said that the steps taken by the company to expand the business in the last few years helped it to register such an increase. A top SBI MF official said, "Since 2014-15, we have invested a lot on expanding our reach across the country." We are continuing to open new branches and are also expanding into distributor partners. The performance of our fund has improved a lot in the last few years and all these things helped us in a strong growth. The sharp increase in assets is good for the fund house as State Bank of India is considering listing its MF unit in the near future.

Industry participants said that in the year 2018, after the debt crisis caused by IL&FS, investors turned to big brands. SBI MF and some other bank-backed fund houses have been instrumental in taking advantage of this trend. HDFC MF, ranked second, had an average AUM of Rs 4.15 lakh crore, higher than ICICI Prudential MF's Rs 4.05 lakh crore.

Franklin Templeton MF's ranking is 11th in terms of asset size compared to last year's ninth position. Small and medium-sized fund houses such as PPFAS MF, ITI MF, Client MF etc. have registered a growth of over 100 per cent.


'Government will decide to cut excise duty on petrol and diesel when the time comes'

'Government will decide to cut excise duty on petrol and diesel when the time comes'

Business Desk: Central Board of Indirect Taxes and Customs (CBIC) Chairman M Ajit Kumar said on Tuesday that the government would consider reducing petrol and diesel prices by cutting taxes when the appropriate time comes. The indirect tax collection from record excise duty on petrol and diesel was up 59 percent year-on-year in the financial year 2020-21, ending March 31. 

In a video call with reporters to give information about tax figures, he said, "We hope that the revenue will be good in the coming months." "As far as fuel price cuts are concerned," Kumar said , The Government is constantly on the lookout on this matter and I am confident that a decision will be taken whenever the time comes. Is considering a cut. However, he did not elaborate on the appropriate timing. 

The price of petrol and diesel was
raised by the government by Rs 13 per liter on petrol last year, while on diesel by Rs 16 per liter. The excise duty on petrol is now Rs 32.90 per liter. The petrol rate in Delhi is Rs 90.56 per liter and excise duty is 36 percent. Excise duty on diesel is Rs 31.80 per liter and excise duty is 39 per cent of its retail selling price of Rs 80.87 per liter. 

Adding VAT (value added tax) of states constitutes 55 to 60 per cent of the total tax in retail prices of these fuels. Petrol prices reached Rs 100 a liter in February in some parts of the country, Rajasthan, Maharashtra and Madhya Pradesh, amid the rise in the price of crude oil in the international market. Although assembly elections were announced in five states, including West Bengal, Tamil Nadu and Kerala, the price hike was put on hold. CBIC member (budget) Vivek Johri said one of the reasons for the 59.2 percent increase in excise collection is the increase in the petroleum tax rate. "If there is a deduction, the revenue collection will be affected by the excise duty," he said. 

Tax collection on oil reached Rs 2.94 lakh crore
Last month, Petroleum Minister Dharmendra Pradhan said in Parliament that tax collection on petrol and diesel was Rs 52,537 crore in 2013, which increased to Rs 2.13 lakh crore in 2019-20. At the same time, it increased to Rs 2.94 lakh crore in the first 11 months of 2020-21. CBIC did not separately provide data on excise collection on petrol and diesel in 2020-21.