A jittery stock market failed to dampen enthusiasm of growth fund investors. This category of mutual fund investors witnessed net inflows in October 2000.

However, monthly figures for the domestic mutual fund industry released by the Association of Mutual Funds in India reveals a decline in net assets under management. Net assets under management for the industry have slumped by Rs 6.3 bn to Rs 968.4 bn by October 31, 2000 (Rs 974.6 bn on September 30, 2000).

But the silver lining came in the form of net inflows of Rs 14.1 bn. Even a slump in stock markets did not deter growth fund investors. Growth funds witnessed net inflows of Rs 4.2 bn (Rs 28.4 bn  Rs 24.3 bn). Investors seemed to have accumulated units on the decline in markets (and NAVs) rather than exit out of panic. This seems to underline the growing maturity of the Indian growth fund investor.

Another interesting fact is the gradual decline in Unit Trust of India's (UTI) market share of the mutual fund industry. As on October 31, 2000 UTI's market share stood at 64.8%, as against 66.2% as on September 30, 2000. Private sector funds have stolen a march over UTI by enhancing market share to 27.3% by October 31, 2000 (26.9% as on September 30, 2000).

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