SBI, ICICI Pru and Kotak register highest AAUM growth

SBI MF, ICICI Prudential MF and Kotak MF have emerged as the top three fund houses  in terms of highest growth in quarterly average AUM in July-September 2020.  

While SBI MF has added Rs.57,000 crore to its AUM kitty, ICICI Prudential MF and Kotak MF have witnessed AAUM growth of Rs 33,757 crore and Rs. 24,271 crore  respectively last quarter.

Next in the list were Aditya Birla Sun Life MF and Axis MF with AAUM growth of Rs 24,082 crore and Rs. 21,940 crore, respectively. 

Overall, SBI MF has retained its spot as the largest fund house of India with Rs 4.21 lakh crore of AAUM in its kitty. While HDFC MF’s AAUM in Jul-Sep stood at Rs 3.75 lakh crore, ICICI Pru MF’s AAUM stood at Rs 3.60 lakh crore.

In percentage terms, Yes MF, Edelweiss MF and PPFAS MF have witnessed over 40% growth in their asset size. Yes MF, Edelweiss MF and PPFAS MF’s AAUM increased by 48%, 45% and 41% respectively. These fund houses were followed by IDBI MF (24%), Mirae MF (23%), Quantum MF (22%) and ITI MF (22%).

Note that on August 21, Yes Bank had sold 100% of the equity shareholding of Yes AMC and Yes Trustee Limited (YTL) to GPL Finance and Investments Limited (GPLFI). GPLFI is  owned by White Oak Investment Management, which is a Mumbai-based boutique investment management and investment advisory firm led by Prashant Khemka.

Fund houses attributed this to mark-to-market gains, good traction in large cap funds and short term debt funds. Swarup Mohanty, CEO, Mirae Asset MF said despite outflows in the MF industry, his fund house has witnessed inflows in equity funds.  He said, “Many investors who were in wait and watch mood entered the market through equity funds post correction. And over the last six months, we have seen a good traction in large cap funds and short term debt funds. This is due to good fund performance of equity funds and no credit events on fixed income side.”

Saurabh Nanavati, CEO, Invesco MF said that his fund house has collected healthy amount during the NFO in September.

Neil Parag Parikh, Chairman and CEO, PPFAS MF attribute his fund house’s growth in assets to exposure to international equities. “In March, we had a 30% cash reserve which helped us invest at attractive valuations. We allocated these funds to international equities and large cap stocks. In addition, we have been good business from MFDs,” said Neil.   

George Heber Joseph, CEO and CIO, ITI MF feels that the strong investment philosophy of his fund house played an important role in sustaining assets. George said, “We promoted lump sum investment in March after the steep correction which turned out to be a good decision for our investors.”

Here are a few more highlights from quarterly average AAUM report

• Only two fund houses - Franklin Templeton and Indiabulls - witnessed a decline in their assets
• As many as 28 out of 39 fund houses with positive growth witnessed double digit growth in percentage terms
• Among the top 10 fund houses in terms of assets, only HDFC MF (5%) did not record double digit growth in percentage terms