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MF News Reliance Mutual Fund adds highest retail AUM in FY 2017-18

Reliance Mutual Fund adds highest retail AUM in FY 2017-18

The fund house added over Rs.20,000 crore last fiscal.
Padmaja Choudhury Apr 19, 2018

Reliance Mutual Fund has added the highest retail AUM of Rs.20,559 crore in FY 2017-18, shows the data collated from AMC websites. The retail AUM of the fund house increased to Rs.73,215 crore from Rs.52,657 crore in March 2017, a growth of 39%.

The fund house manages total AUM of Rs.2.45 lakh crore as on March 2018. This indicates that 30% of its AUM came from retail investors.

Sundeep Sikka, ED and CEO, Reliance Mutual Fund attributes this to the retail focus of the fund house. “We have always been focussed on the retail segment. We have a strong network of IFAs and branch offices help us reach out to retail investors in B15 cities. The brand name of Reliance also helps,” said Sundeep.

However, HDFC MF still tops the retail market share with assets of Rs.73,365 crore as on March 2018. The fund house added Rs.18,956 crore last fiscal. 

Retail AUM of the top six fund houses

AMC

Mar-17

Mar-18

Difference

Change in  %

Reliance

52657

73215

20558

39

HDFC

54409

73365

18956

35

SBI

29613

45214

15601

53

Aditya Birla

28406

43835

15429

54

ICICI

40366

54719

14353

36

UTI

45968

55326

9358

20

Total

251419

345674

94255

37

Source: AMC websites

SBI Mutual Fund saw the third highest increase in retail AUM. The retail assets of the fund house increased by Rs.15,601 crore to Rs.45,214 crore in March 2018.

Srinivas Jain, CMO (Strategy and International Business), SBI Mutual Fund believes that IAPs have helped them increase retail AUM. “We are conducting investor awareness programmes across India. We have also promoted SIPs as a convenient way to invest in mutual funds,” said Srinivas.

UTI Mutual Fund added Rs.9,325 to its retail AUM kitty in FY 2017-18. The fund house witnessed 20% increase, which is less than that of other top six fund houses. UTI MF managed retail AUM of Rs.55,326 crore as on March 2018.

A senior official of UTI MF cited absence of sponsor banking channel as the key reason behind the lower growth. “We do not have a bank as our key sponsor. Other AMCs are able to leverage the advantages of a sponsor bank. Also, our retail folios, especially from the smaller cities, are increasing but I think the lower ticket size maybe the reason behind low growth,” he said.   

In percentage terms, Aditya Birla Sun Life Mutual Fund witnessed the highest growth in retail AUM.  Retail AUM increased to Rs. 43,835crore from Rs.28,406 crore last year, a growth of 54%.

 

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