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
