Sponsors of HDFC MF contribute the highest to its AUM

HDFC Mutual Fund recorded the highest contribution from sponsors and associates among the 38 fund houses in the country. Out of Rs.3 lakh crore AUM in March, sponsors and associates contributed Rs.12,453 crore or 4.14% to the total AUM, shows AMFI data.

Sponsors of the fund house invested a total of Rs.12,022 crore in the debt and money market schemes out of which they parked Rs.7,379 crore in their liquid funds.  

To arrive at the contributions by sponsors, we took direct investments of the corporate sponsors and associates from the average monthly AAUM disclosed by the fund houses. These sponsors and associates usually park their excess funds in liquid and short-term debt funds.

Aditya Birla Sun Life Mutual Fund followed HDFC Mutual Fund with a contribution of Rs.10,297 crore or 4.16% of overall AUM from its sponsors and associates. Of this, they invested close to Rs.4,077 in liquid funds and a total of Rs.9,750 crore in fixed income schemes.

Other fund houses such as ICICI Prudential Mutual Fund, SBI Mutual Fund and Tata Mutual Fund also had substantial contribution from their sponsors and associates.      

In percentage terms, Motilal Oswal Mutual Fund received the highest contribution from their sponsors. Sponsors and the associates contributed Rs.2,369 crore or more than 13% of their overall AUM.

While most sponsors invest in debt schemes, the sponsors of Motilal Oswal Mutual Fund invested in equity funds as the fund house has only one debt fund and that too in the liquid fund category. They contributed mostly in pure equity funds. Of the total contribution of Rs.1,101 crore from sponsors and associates, Rs.1,098 or almost 100% is in equity funds.

Among top 10 fund houses, Franklin Templeton Mutual Fund had the lowest contribution from sponsors and associates. The AUM from sponsors stood at Rs.4.77 crore in March out of the total AUM of the Rs.1 lakh crore. The entire contribution of sponsors was in Franklin India Treasury Management Account.

Of all the fund houses, PPFAS Mutual Fund had the lowest contribution from sponsors and associates. Its AUM of corporate sponsors stood at Rs.1.15 lakh. However, if we include contributions from insiders, it went up to Rs.108.3 crore or 10.94%. Currently, they manage only one scheme, Parag Parikh Long Term Equity Fund. 

The monthly AAUM data of a few fund houses were not available with AMFI.

Overall, sponsors and associates contributed close to Rs.68,327 crore in mutual funds, which is 3% of the industry AUM.

Contribution (in Rs crore) of sponsors and associates, as on March 2018

Source: AMFI