Out of the total Rs. 13.55 lakh crore average AUM as on March 2016, 6% or Rs. 76,308 crore AAUM is advised by associate distributors or sponsors of AMCs engaged in mutual fund distribution, shows the latest AMFI data.
The assets channelized through associate distributors fell from Rs. 81,179 crore in March 2015 to Rs. 76,308 crore in March 2016.
If you look at the composition of assets, associate distributors are active in selling equity funds and debt funds. Of the total Rs. 76,308 crore advised by associate distributors, 56% was channelized in debt funds while 44% was channelized in equity funds, including balanced funds.
AUA managed by associate distributors
|
Category |
Contribution from associate/ sponsor Mar 15 |
Contribution from associate/ sponsor Mar 16 |
Change |
Total industry AUM March 16 |
% to total AUM March 2016 |
|
Equity |
24,177 |
29,585 |
5,408 |
379,394 |
8% |
|
Balanced |
1,849 |
3,753 |
1,904 |
41,739 |
9% |
|
ETFs |
37 |
48 |
11 |
20,927 |
0% |
|
Debt |
55,008 |
42,866 |
(12,142) |
911,136 |
5% |
|
FOFs overseas |
108 |
56 |
(52) |
1,960 |
3% |
|
Total |
81,179 |
76,308 |
(4,871) |
1,355,156 |
6% |
|
Source: AMFI Rs. cr. |
|||||
It is no surprise that affiliates of fund houses tend to promote products of group AMCs. Typically, new AMCs rely on their sponsor or group companies to sell their funds until they establish a track record and sizeable AUM. For instance, Axis MF got a lot of investor’s through its banking channel when it started out. Now, it has a more broad-based distribution comprising IFAs and NDs.
Banks sponsored AMCs, especially private sector players, get good business from their bank channels. On the other hand, their public sector counterparts are not as active in MF distribution. Among the banks sponsored AMCs, SBI MF is the only exception which gets decent business from its sponsor – SBI Bank. In FY 2014-15, SBI MF got gross inflows of Rs. 23,020 crore from SBI Bank and its subsidiaries.
SEBI had instructed AMCs to disclose this data through its 2012 circular ‘Steps to re-energize Mutual Fund Industry’ in 2012.
