HDFC, ICICI Pru and Reliance are the most profitable fund houses in FY 2017-18

HDFC MF continued to be the most profitable fund house with profit after taxation (PAT) of Rs.721 crore in FY 2017-18.

ICICI Prudential MF and Reliance MF followed HDFC MF with PAT of Rs.626 crore and Rs.505 crore, respectively.

In percentage terms, LIC MF and Motilal Oswal MF have witnessed a healthy growth in profitability. In fact, Motilal Oswal MF has recorded PAT of Rs.132 crore that is higher than some big AMCs. The fund house has witnessed healthy growth in its PMS and advisory business.

Among top ten fund houses, DSP recorded the highest growth in profits. The financial data shows that the fund house has witnessed 132% growth in its PAT i.e. from Rs.85 crore in FY 2016-17 to Rs.201 crore in FY 2017-18.

A further analysis of profit figures of all AMCs shows that of 37 AMCs, 28 have reported profits in FY2017-18.

Experts attributed rise in profitability to the growth in retail assets in equity funds. AMFI data shows that the AUM of equity funds rose 59% to reach Rs.10.68 lakh crore and the industry added 1.60 crore retail folios in FY 2017-18.

Apart from mutual fund business, AMCs derive profits from portfolio management, alternative investment funds and offshore advisory services.

However, a few AMCs witnessed decline in their profit margins. IDFC MF witnessed the highest decline in profit figures last fiscal. Its profit decreased to Rs.55 crore from Rs.97 crore last fiscal. 

On the other hand, a few AMCs such as Union and Edelweiss reported loss largely due to amortisation. While Union Mutual Fund acquired the entire stake from the KBC Asset Management, Edelweiss MF took over schemes of JP Morgan AMC in FY 2016-17.

Cafemutual could not access the financial results of FY 2016-17 of a few fund houses such as Franklin Templeton, L&T and Mirae Asset. 

Fund houses rankings based on PAT in FY 2017-18