Tata TD Asset Managementand Reliance Capital Asset Management have seen their assets under management (AUM) more than double in the first seven months of 2003-04. The two mutual funds have seen the highest growth among the private sector funds that are relatively older, according to the latest data released by Association of Mutual Funds in Idia (AMFI). However, the highest growth in AUM among all mutual funds has been recorded by Deutsche Asset Management (India).

Its assets grew more than seven times to Rs 2,264 crore from Rs 310 crore in just seven months. Among the other new entrants, HSBC's assets have more than tripled to Rs 2,856 crore from Rs 751 crore. Among the public sector mutual funds, IL&FS Asset Management showed a growth of 84 per cent since the beginning of the current financial year to Rs 1,950 crore from Rs 1,059 crore. The total growth of AUM for the whole industry was 59.5 per cent to Rs 126,726 crore as on October 31 from Rs 79,464 crore as on March 31.

While Tata TD's assets grew 183 per cent from Rs 1,028 crore on March 31 to Rs 2,913 crore, Reliance's assets grew 177 per cent, from Rs 2,420 crore to Rs 6,714 crore. While most of the private mutual funds witnessed double digit growth in their AUM, Alliance Capital Asset Management, once a highly acclaimed fund house in India, witnessed its AUM fall from Rs 2,291 crore as of March 31, to Rs 2,264 crore at the end of October. According to industry players, the rise in AUM by Reliance MF was surprising.

The fund house had remained absolutely low profile as far as marketing of its products were concerned and yet its asset growth was phenomenal, a senior mutual fund official said. However, net asset values of all its schemes, especially the equity funds, had shown phenomenal appreciation during the same period, historical NAV data showed. The rise in the assets of Tata Mutual Fund, from Rs 1,028 crore to Rs 2,661 crore is attributed partly to its marketing initiatives and partly to the performance of its schemes.

According to fund managers and other industry officials, the growth of Deutsche Mutual Fund's assets probably betters the growth shown by HDFC Mutual Fund a couple of years ago. But in case of HDFC, industry players said, the equity market was then on a downward trajectory while the equity market has been on a northward journey over the last 6-7 months after Deutsche Mutual Fund came to the market late January.