After HDFC, Reliance and ICICI Prudential, Birla Sun Life is the fourth fund house to cross Rs. 1 lakh crore AUM in May 2014.
Birla Sun Life Mutual Fund has become the fourth fund house to cross Rs. 1 lakh crore assets under management mark recently.
Birla Sun Life Mutual Fund is currently managing Rs. 1.05 lakh crore. As on March 31, 2014, its AUM was Rs. 89,051 crore. Currently, the fund house manages equity assets of close to Rs. 16,000 crore.
A Balasubramanian, Chief Executive Officer, Birla Sun Life Mutual Fund attributed this growth to its superior fund performance. “We have seen highest growth in our equity assets compared to other players. Most of our funds have outperformed the benchmark. Our equity AUM has grown to Rs. 16,000 crore recently. Also, we have received healthy inflows in debt funds,” says Balasubramanian.
In a press conference held in Mumbai, Balasubramanian said that investors are coming back to equity funds due to stable government. He said, “Of Rs. 2,808 crore of inflows in equity mutual funds, Birla Sun Life garnered close to Rs. 450 crore on the day of election result i.e. May 16, 2014. We observed that many HNIs and staunch believer of equity have put their money on that day.”
Distributors say that the fund house is attracting investors on the back of its strong equity fund performance.
Vinod Jain of Jain Investments believes that growth of a fund house depends on performance of its equity funds. “The fund house has delivered extremely good performance in some of its equity funds. And equity funds reflect the health of any fund house. A few months back ICICI Prudential has also breached the Rs.1 lakh crore mark on back of strong performance of its equity funds.”
“The fund house has been delivering consistent performance from the last four years. Birla Sun Life has a good debt fund management team also. Their debt fund strategy has worked well even in rising interest rate environment. In fact, Birla Sun Life Dynamic Bond Fund has done exceptionally well. This fund is among top recommendations of distributors. Also, on equity side, Birla Sun Life Frontline Equity has delivered good returns in comparison to other equity funds in the same category,” says Nikhil Kothari of Etica Wealth Management.