Top 10 fund houses account for 80% of industry’s debt AUM

The AUM of the top 10 fund houses accounted for nearly 80% of the total debt AUM in the industry. Overall, the total debt AAUM of the top 10 fund houses stood at Rs9.59 lakh crore, as on March 2017, while the total average debt asset was Rs12 lakh crore.

The largest fund house in terms of AUM, ICICI Prudential Mutual Fund, manages the highest debt AUM. According to the quarterly AAUM data for the quarter ended March, ICICI Prudential Mutual Fund managed a total AUM of Rs2.48 lakh crore of which 62% of the assets was in debt funds.

Debt AUM of the fund house has increased by over 32%, from Rs1.16 lakh crore in FY 2015-16 to Rs1.53 lakh crore in FY 2016-17.

Income funds constituted a major part of its debt AUM. AUM under income funds grew 35% whereas assets under liquid funds witnessed a growth of 27%. Income funds constituted 69% and liquid funds constituted 30% of its debt AUM, respectively.

We have included income funds, liquid funds and gilt funds in debt funds.

Similarly, Birla Sun Life Mutual Fund, the fourth largest fund house, stood at second position with debt AUM of close to Rs1.45 lakh crore. In absolute terms, the fund house recorded the highest growth in debt AUM. Its debt AUM increased by Rs40,400 crore, from Rs1.04 lakh crore, in the preceding fiscal.

HDFC MF, which currently manages largest equity AUM, was at the third position with a debt AUM of Rs1.44 lakh crore. Reliance Mutual Fund follows HDFC Mutual Fund with debt AUM of Rs1.41 lakh crore.

In terms of percentage, DSP BlackRock Mutual Fund recorded highest growth in its debt AUM last fiscal. The fund house saw 66% growth in debt AUM, from Rs23,140 crore to Rs38,323 crore, in the financial year.

Experts say that corporate investors have internal guidelines for selecting a fund for investment. These investors generally invest with large fund houses with a good track record.

Debt AUM of top 10 AMCs

Source: Company disclosure