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Rising investor interest in ETFs and index funds coupled with a steep market rally led to a 40% growth in passive AUM of major mutual funds in FY 2022, shows an analysis quarterly AUM data of mutual funds done by Cafemutual.
Comparison of last quarter AUM data of FY 2021 and FY 2022 shows that the passive AUM of major fund houses rose from Rs. 2.90 lakh crore to Rs. 4 lakh crore in the last financial year, registering a growth of around 40%. Over 80 passive funds were launched during the period.
This growth was mostly driven by the top four passive players — SBI, UTI, Nippon India and Edelweiss. In the fourth quarter of FY 2022, the average passive AUM of SBI was highest in the industry at Rs. 2 lakh crore, followed by UTI (Rs. 62,000 crore) and Nippon (Rs. 50,000 crore).
Among the top 5 players, ICICI Prudential registered the highest growth as its passive AUM almost doubled from Rs. 17,000 crore to Rs. 33,000 crore, the analysis showed.
A look at the index fund and ETF AUMs separately shows that SBI is far ahead of the competition in the ETF space with an AUM of Rs. 1.90 lakh crore, which is four times that of the nearest competitor. However, in the index fund space, UTI, HDFC and ICICI Prudential have the lead.
Please note that we have not included the AUM of international passive funds in this study.
All numbers are in Rs crore | The Q4 FY 2021 data of LIC, Tata and Sundaram was unavailable | *For Navi, we have used the average AUM of March.
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