Equity AUM from B15 locations has grown by 41% from Rs. 64,032 crore in June 2014 to Rs. 90,340 crore in June 2015, shows the latest AMFI data.
While the B15 equity AUM has grown by 41% the industry’s equity AUM has grown by much higher percentage (54%) from Rs. 2.41 lakh crore to Rs. 3.72 lakh crore during the same period.
Interestingly, almost half of the B15 AUM consists of equity assets. Of the Rs. 1.92 lakh crore total B15 AUM, 47% or Rs. 90,340 crore consists of equity B15 AUM.
Growth in B15 AUM
The growth in equity B15 AUM can be partly attributed to mark to market gains as the Sensex has risen 9% during the same period. Also, a lot of AMCs are focusing on getting inflows from B15 cities as they stand to benefit by charging a higher TER on B15 assets. SEBI has allowed AMCs to charge a 30 basis extra TER if the new inflows from beyond top 15 cities are at least (a) 30% of gross new inflows in the scheme or (b) 15% of the average assets under management of the scheme, whichever is higher. Besides, distributors are also paid higher commissions for sourcing B15 applications and the new commission structure which capped upfront at 1% is not applicable to B15 locations.
As compared to equity, debt funds saw a modest growth in B15 locations. The debt B15 AUM grew by 6% from Rs. 88,220 crore in June 2014 to Rs. 93,831 crore in June 2015. Of the total Rs. 8.57 lakh crore debt AUM, 11% or Rs. 93,831 crore comes from B15 locations. This is due to higher concentration of corporates in T15 locations. AMFI data shows that 42% of the total industry’s assets are concentrated in Mumbai.
The total B15 AUM has grown by 22% from Rs. 1.57 lakh crore to Rs. 1.92 lakh crore during the same period, which is 15% of the total Rs. 12.64 lakh crore AUM of the industry.
