Prudential-ICICI Mutual Fund (MF), India's second largest mutual fund in the private sector has clocked net assets in excess of Rs 30 bn, and is a whisker away from Birla MF, which manages assets worth Rs 35 bn.

Some of Prudential-ICICI's most important schemes include Prudential ICICI Growth Plan, which has posted over 170% growth in the last year. The Balanced Fund has already registered absolute returns of 20%, only 20 months after its launch. Its FMCG (fast moving consumer goods) Fund has witnessed 20% growth over the last 9 months.

Prudential-ICICI's fixed income funds have also done well. The Gilt Fund has yielded 12.8% p.a. since its launch. The Income Plan has witnessed 13.8% growth and is among the better performing funds in the country.

Prudential-ICICI MF has come a long way since its inception less than 19 months ago. The Fund commenced operations with a mere Rs 1.6 bn before turning into one of the largest players in the industry. It is now within striking distance of Birla MF, which is a more seasoned player. This just goes to show that with the frenzy in the MF industry at present even a David can turn into a Goliath some day.

Other smaller private funds like Kothari Pioneer, Kotak Mahindra and DSP have also risen fast mainly because of their innovative products and services. Moreover, they were perceived as being more investor friendly than others like UTI. The private funds have also posted impressive returns, which has improved mobiisations at an exponential rate.

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