The UTI, which once controlled the stock markets with its financial muscle, mobilised Rs 658 crore in the month but faced redemptions worth Rs 833 crore. On the other hand, 23 private mutual funds mobilised over Rs 2534 crore as against redemptions of Rs 2,034 crore. ``Now the tables have been turned. Private funds have overtaken the UTI. After the trust has taken a beating in the US-64 episode last year, it has not looked up,'' said a fund manager.

However, the UTI still accounts for a lion's share of assets under management. While the assets under the management of all mutual funds industry is in the order of Rs 85,487 crore as on September 30, the UTI manages assets worth Rs 63,113 crore. Thismeans other funds still have a long way to go to reach the size of the UTI.

According to fund managers, there has been a distinct change in the fund mobilisation pattern in India. ``The monopoly of the UTI in fund mobilisation is under serious threat. Private MFs are launching attractive schemes with novel features. Most of them are also performing well with many funds even outperforming Bombay Stock Exchange Sensex,'' said the CEO of a private mutual fund who preferred anonymity.

During the first half of fiscal 1999-2000, private mutual funds have cornered nearly 70 of the funds came to the sector. Out of the total net inflow of Rs 6,888 crore during April-September 1999, private mutual funds accounted for Rs 4,939 crore. ``This is a spectacular performance as private funds had hardly collected Rs 300 crore in the same period of the last year,'' said an industry source.

There is no wonder, total assets managed by private mutual funds had also moved up steeply. Total assets managed by private funds hadshot up from Rs 4,682 crore to Rs 13,543 crore in a year, showing a rise of nearly 190 points. ``But the UTI's assets have not made any significant rise. Moreover, the UTI also witnessed a seven per cent decline in the net inflow of funds during the first six months of 1999-2000,'' fund managers said.

The inflow of funds to the UTI came down sharply to Rs 107 crore in the second quarter (July-September) as against over Rs 2000 crore in the first quarter (April-June) of the year. ``Many investors are upset with the trust after the US-64 problem. The trust also cut dividend on US-64 this year. Other private funds are giving half-yearly and even quarterly dividends to investors. With dividends now tax-free, investors are naturally attracted,'' said an investor.

Many private MFs have now restructured their schemes and are focussing on booming sectors like software, pharma and FMCG. The market regulator SEBI was also tough with mutual funds by asking them to comply with promises. The regulator had alsopenalised several funds, giving more confidence to the investing public.