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MF News HDFC MF still holds top position in equity AUM

HDFC MF still holds top position in equity AUM

The fund house manages an equity AUM of Rs. 92,679 crore as on March 31, 2017.
Rosevina Gonsalves May 18, 2017

HDFC Mutual Fund is still the largest fund house in terms of equity AUM.

The fund house lost its top position as the mutual fund house managing the largest AUM last year to ICICI Prudential Mutual Fund but it turned out to be a winner in the equity AUM category. HDFC MF manages a total AUM of Rs.2.37 lakh crore of which 40% of the assets is in equity funds. Equity AUM of the fund house has increased by over 45% from Rs. 63,900 crore in FY 2015-16 to Rs. 93,000 crore in FY 2016-17.

Milind Barve, MD & CEO, HDFC Mutual Fund attributes this growth to performance of their funds and strong distribution network of the fund house. “We have been gaining the topmost position in managing the largest equity AUM for the last five years. Our focus on delivering good performance helped us gain popularity among investors. In addition, our strong network of distribution channel has helped us grow over the years.”

We have included pure equity funds, balanced funds, ELSS and ETFs in equity funds.

ICICI Prudential MF which currently manages the largest AUM in the industry stood at the second position with an equity AUM of Rs. 89,377 crore.

Similarly, Reliance MF stood at third position with equity AUM of close to Rs.67,000 crore.

In terms of percentage, SBI MF recorded highest equity AUM growth last fiscal. The fund house witnessed 92% growth in equity AUM from Rs.34,165 crore to Rs.65,744 crore. This could be partially due to inflows in ETFs because of EPFO’s contribution.

In a recent interview with Cafemutual, DP Singh, CMO, SBI MF said, “Our schemes have been performing quite well. The schemes have been outperforming their respective benchmarks because of which more investors are putting their faith in us. In addition, we have been constantly reaching out to investors and distributors, encouraging them to work with us. Our brand name has also helped us receive inflows. Other than SBI ETF Nifty 50 Fund, which has been getting inflows from EPFO, other schemes are also getting consistent inflows. Schemes whose assets have increased manifold in the last year include SBI Bluechip Fund and SBI Magnum Taxgain Scheme. In fact, the AUM of SBI Bluechip has increased from nearly Rs.5,000 crore in March 2016 to Rs.13,000 crore in March 2017.”

Overall, the total equity AUM of the top 10 fund houses stood at Rs.5.16 lakh crore as on March 2017. Interestingly, this indicates that the top 10 fund houses account for nearly 82% of the total equity AUM in the industry. The total equity AUM of the industry grew by 46% to Rs.6,30  lakh crore as on March 31, 2017 as against Rs. 4.31 lakh crore in the previous corresponding year.

Fund houses earn from the total expense ratio charged on schemes. Equity funds, which charge higher expenses as compared to debt funds, are more profitable for fund houses. It saw net inflows of over Rs3.50 lakh crore of which Rs1.34 lakh crore was from equity funds, including ELSS, balanced funds and ETFs, which helped AMCs grow their PAT.

Equity AUM of top 10 AUM

Fund House

AAUM as on March 31, 2017 (in Cr.)

AAUM as on March 31, 2016 (in Cr.)

Percentage increase

HDFC Mutual Fund

92,679

63,862

45.12%

ICICI Prudential Mutual Fund

89,377

59,674

49.78%

Reliance Mutual Fund

66,963

48,071

39.30%

SBI Mutual Fund

65,744

34,195

92.26%

Birla Sun Life Mutual Fund

50,116

31,916

57.02%

Franklin Templeton Mutual Fund

47,778

 

 

31,589

51.25%

UTI Mutual Fund

39,948

31,044

28.68%

DSP BlackRock Mutual Fund

25,250

15,550

62.38%

Kotak Mahindra Mutual Fund

24,824

14,474

71.51%

IDFC Mutual Fund

13,520

12,819

5.47%

Total

5,16,199

3,43,194

50.41%

Source: Company disclosure

1 Comment
MANDEEP SINGH · 5 months ago
WELL DONE HDFC AMC FOR HIGHEST EQUITY AUM
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