ICICI Prudential and IDFC see highest growth in equity assets

While the industry’s assets under management in equity funds grew 11%, ICICI Prudential and IDFC saw their equity assets grow by over 20% last fiscal.   

ICICI Prudential, IDFC and Birla Sun Life emerged as the highest gainers in equity assets last fiscal.

ICICI Prudential recorded the highest growth (absolute terms) in equity assets. Its equity AUM increased by Rs. 3,675 crore or 22% last year. Eighth largest fund house by assets IDFC saw its equity AUM jump by 27% or Rs.  1619 crore while Birla Sun Life and Kotak saw their equity assets increase by Rs. 619 crore and Rs. 232 crore respectively.

ICICI Prudential had launched closed-end equity funds last fiscal. ICICI Prudential’s Value Fund Series 1 was the highest grosser in the closed-end equity fund category which collected Rs. 643 crore. Similarly, IDFC and Birla Sun Life had also launched their closed-end equity funds.

India's largest fund houses, HDFC and Reliance saw their equity assets dip by Rs. 2,741 crore and Rs. 426 crore respectively. SBI and UTI too recorded a decline in their equity assets by 9% and 7% respectively during the last fiscal.

DP Singh, Executive Director & Chief Marketing Officer (Domestic Business), SBI Mutual Fund said that many investors who had invested six years ago have redeemed their investments by booking profits now. He, however, said that investors are coming back in equity funds due to improved sentiments and stable government.

Among the top ten fund houses, DSP BlackRock too witnessed a decline of 22% in its equity AUM. Its equity assets fell from Rs. 10,796 crore to Rs. 8,437 crore in FY 2013-14.

“Though the equity AUM of industry has grown, no new investments have come in equity funds in the last fiscal. This growth is largely on account of mark to market gains,” says a senior official of a mid-sized fund house.

Thanks to mark-to-market gains and closed-end equity funds launches, equity AUM of the industry grew by 11% from Rs. 1.72 lakh crore to Rs. 1.91 lakh crore in FY 2013-14.

However, total equity AUM of the top ten fund houses saw a marginal decline of 2% from Rs. 1.55 lakh crore to Rs. 1.53 lakh crore in the last fiscal.

Fund officials attributed this decline to redemptions as many investors exited equity mutual funds after booking profits. The S&P BSE Sensex rose by 19% while CNX Nifty grew 18% last year.

Equity funds saw net outflows of Rs. 9,268 crore last fiscal.

Equity AUM of the top ten fund houses

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