The fund house registered a net profit of Rs. 358 crore for the year ended March 2014 as against Rs. 319 crore in the previous year.
India’s largest fund house by assets, HDFC Mutual Fund reported a net profit of Rs. 358 crore in FY13-14, up 12% from Rs. 319 crore in the previous year.
HDFC’s assets under management grew by 19% from Rs. 98,375 crore in March 2013 to Rs. 1.16 lakh crore in March 2014. HDFC manages 50 schemes across all categories. Its total investor account base or folios fell by 4.7 lakh from 49.87 lakh in March 2013 to 45.08 lakh in March 2014. The mutual fund industry lost nearly 33 lakh folios last year, mainly on account of redemptions from equity funds.
HDFC’s competitor Reliance reported profit before tax of Rs. 352 crore. Its net profit could not be ascertained. Reliance MF’s assets under management grew by 9% from Rs. 94,580 crore to Rs. 1.03 lakh crore in March 2014.
Fund houses earn from the total expense ratio charged on schemes. Equity funds, which charge higher expenses as compared to debt funds, are more profitable for fund houses. The industry’s assets under management in equity funds grew 11% from Rs. 1.72 lakh crore in March 2013 to Rs. 1.91 lakh crore in March 2014.
