Profits of the top nine AMC increase by 21% in FY2016-2017

The profits of nine AMCs grew by 21% to Rs.2,351 crore in FY16-17 from Rs.1,945 crore in FY15-16, show  the company disclosures.

We have excluded Franklin Templeton AMC as the fund house follows October-September year for its financial results.

HDFC AMC continues to be the most profitable fund house.  The fund house recorded an increase of 15% in its profit after tax(PAT) to Rs.550 crore in FY 2016-17 from Rs.477 in the preceding fiscal.

PAT of top ten houses

Source: company disclosure,

Figures in Rs.crore

ICICI Prudential AMC has overtaken Reliance Mutual Fund for the second position. The data shows thatICICI Prudential AMC witnessed 48% increase in its profit to Rs.480 crore. In March 2016, its profit stood at Rs.325crore. The fund house’s profitability has increased by 48% in a year.

Reliance Mutual Fund, third largest fund house in terms of AUM, recorded a 9% increase in its PAT at Rs.405crore last fiscal.

Sundeep Sikka, CEO, Reliance Nippon Life AMC attributes this growth to the increase in the retail business. Retail business brings in more profit as retail investors invest mostly in equity funds and stay put for long term.

In percentage terms, Axis AMC witnessed the highest increase in profits. Its profits haveincreased by 84% from Rs.31 crore in the previous fiscal to Rs.57 crore in FY 2016-17.  

UTI AMC and SBI AMC also clocked higher profits. The profits of both the AMCs increased by Rs.59 crore in 2016-2017. While UTI AMC’s PAT has increased to Rs.291 crore last fiscal from Rs.232 crore in FY 2015-16, SBI AMC recorded PAT of Rs.224 crore in FY 2016-17 from Rs.165 crore in the corresponding period preceding fiscal.

D.P Singh, CMO, SBI Mutual Fund says that the growth in profit is due to increase inAUM. “The AUM of our fund house has increased from Rs.1.06 lakh crore to Rs.1.57 lakh crore, which has led to the growth in the profit. Most of our profit has come from MF business,” says Singh.