The net profit of the MF industry grew by 7% in one year to Rs.8300 crore

An analysis of net profit of AMCs done by Cafemutual reveals that the industry earned Rs.8300 crore in FY 2023 as against Rs.7700 crore in FY 2022, a growth of 7%.

Net profit is derived after deducting all expenses like operation, taxation and so on. We have covered 39 AMCs to arrive at this data. Data from two AMCs – Mirae Asset and Franklin Templeton could not be obtained as they follow Jan-Dec and Oct-Sept period, respectively to report their financials.

Of the 39 AMCs, 27 AMCs were profitable last financial year. Of the profitable companies, eight AMCs saw decline in their net profits.  Motilal Oswal MF saw the maximum decline of Rs.114 crore in its profitability.

Overall, ICICI Prudential AMC became most profitable fund house last financial year with net profits of Rs.1516 crore. HDFC AMC and SBI AMC were the next two in the list with net profits of Rs.1424 crore and Rs.1400 crore, respectively.

All in all, AMCs derive profit from three businesses – mutual funds, PMS and AIFs and offshore advisory among other things.

One AMC – 360 One MF with focus on PMS and AIF space did well last financial year. The company reported net profit of Rs.252 crore in FY 2023 as against Rs.165 crore in FY 2022, which was more than that of most top fund houses.

Overall, 12 companies reported net loss with WhiteOak Capital, ITI and Mahindra Manulife among the AMCs with over Rs.30 crore of losses.

Here is the complete of net profits of AMCs: