In terms of AUM, the market share of eight public sector fund houses has increased from 15% in FY 2014-15 to 17% in FY 2015-16.
After witnessing continuous decline in market share in terms of AUM, public sector fund houses have made a comeback. The market share of eight public sector fund houses, in terms of AUM, has increased from 15% in FY 2014-15 to 17% in FY 2015-16, shows the latest SEBI data.
The AUM of public sector fund houses went up by 28% to Rs. 2.11 lakh crore crore last fiscal. In FY 2014-15, the AUM of public sector AMCs was close to Rs. 1.65 lakh crore. According to SEBI data, these fund houses have received net inflows of close to Rs. 43,000 crore in FY 2015-16.
The increase in market share of public sector fund houses could be attributed to the strong AUM growth witnessed by UTI and SBI MF, which are the only two largest PSU players in the top 10 league.
Last fiscal, UTI and SBI crossed Rs. 1 lakh crore AUM milestone. Experts attributed the growth of public sector fund houses to aggressive marketing, superior fund performance and improved customer service.
While public sector AMCs grew, their private sector peers lost market share proportionately. The market share of private sector fund houses declined marginally by 2%. As a result, private sector fund houses now account for close to 83% of the market share in terms of AUM. In FY 2014-15, private sector fund houses had a market share of 85%.
However, in absolute terms, the AUM of private sector players increased by 11% i.e. from Rs. 9.18 lakh crore in FY 2014-15 to Rs. 10.22 lakh crore in FY 2015-16. In terms of inflows, private sector fund houses have received close to Rs. 91,500 crore in FY 2015-16.
