Industry AUM up 7% in last quarter, most AMCs register growth

The financial year started on a good note for the mutual fund industry. The quarterly average AUM of the MF industry grew by 7% in June 2017 compared to the preceding quarter, shows the latest AMFI data. In just three months, the quarterly assets of the mutual fund industry has reached an all-time high at Rs19.52 lakh crore in June 2017 as against Rs18.28 lakh crore, a growth of over Rs1.24 lakh crore.

Kotak Mahindra Mutual Fund crossed milestone AUM of Rs1 lakh crore in the first quarter of FY 2017-18. It is now the seventh fund house to join the Rs1 lakh crore AUM group. Kotak MF added close to Rs9,000 crore to its kitty to reach Rs1.01 lakh crore AUM in June 2017 as against Rs92,216 crore in March 2017, a growth of 10%.

The first quarter of the current financial year has been good for Axis Mutual Fund also. It became the 10th largest fund house, overtaking IDFC Mutual Fund.  While Axis MF added close to Rs6,000 crore to its kitty to reach AUM of Rs63,600 crore, IDFC MF’s AUM stood at Rs61,361 crore in June 2017.

In terms of size, fund houses like ICICI Prudential, HDFC, Reliance and Birla Sun Life, are still at the top, with the highest recorded AUM for the last quarter at Rs2.60 lakh crore, Rs2.53 lakh crore, Rs2.23 lakh crore and Rs2.06 lakh crore, respectively. Birla Sun Life MF became the fourth fund house to cross AUM of Rs2 lakh crore.

Both ICICI Prudential Mutual Fund and HDFC Mutual Fund witnessed healthy AUM growth in absolute terms. Both the fund houses added over Rs15,000 crore to their AUM kitty.

In terms of percentage, emerging fund houses like Motilal Oswal and Mirae Asset have recorded growth of 28% and 23%, respectively.

Experts believe that the growth is largely due to sustained inflows in equity funds through SIPs and market gains. While fund houses have been receiving close to Rs4,500 crore each month through SIP, BSE Sensex crossed the 30,000 mark in the first quarter of FY 2017-18.

Of 39 AMCs, only seven fund houses – Tata, DHFL Pramerica, JM Financial, Indiabulls, IDFC, Peerless and Taurus – witnessed a decline in their quarterly AUM.

Quarterly AUM of fund houses as on June 2017

Source:AMFI