MFs to disclose AUMs on quarterly basis from now on


New Delhi: Mutual funds will declare their assets under management (AUM) on a quarterly basis, starting from the December quarter, after industry body AMFI decided the existing practice of monthly disclosure of their client base was creating unnecessary competition between fund houses. "The AAUM for each quarter (90 days average) will be computed and uploaded on AMFI Website on the first working day of the following month of every quarter, effective from the quarter ending December 31, 2010," Association of Mutual Funds in India (AMFI) said. Industry sources said the AMFI was concerned about some unnecessary competition between players due to monthly disclosure of asset under management (AUM) data. They said the MFs were also resorting to unethical practices to inflate their asset base. "MF industry is liquidity driven and inflow and outflow of fund cannot be same all the time.
Source: PTI