India’s asset management companies (AMCs) own assets under management (AUM) worth ₹24.46 trillion, according to data released by the Association of Mutual Funds in India (Amfi), a mutual fund industry lobby, for the January-March period. Out of the total industry assets, a huge 82.7% is owned by the top 10 AMCs, who have owned around 80% of the industry assets over at least three years now. We have taken AUM numbers, excluding domestic fund-of-funds, from Amfi.
HDFC Asset Management Co. Ltd has claimed the top spot with an average AUM of ₹3.42 trillion, overtaking ICICI Prudential Asset Management Co. Ltd with an average AUM of at ₹3.20 trillion. HDFC AMC saw a solid AUM growth of 14%.
SBI Asset Management Co. Ltd climbed two places from the fifth to the third spot with an AUM of ₹2.83 trillion.
FASTEST AND SLOWEST
Among the top 20 AMCs, Mirae Asset Global Investments (India) Pvt. Ltd registered the fastest growth compared to the corresponding quarter of FY2017-18. The AMC has witnessed growth in the past few years as well. Its AUM grew by 54% compared to the last quarter of FY2017-18.
SBI Mutual Fund recorded the second fastest growth rate at
30% despite its already huge size. “Among the fund houses that grew the largest in FY18-19, the AUM growth of SBI Mutual Fund is likely to be the result of ETF (exchangetraded fund) inflows. It gets huge inflows from the EPFO (Employees’ Provident Fund Organisation). In case of Mirae, both of its flagship funds—Mirae Asset India Equity (now Mirae Asset Large Cap Fund) and Mirae Asset Emerging Business Fund— have delivered very strong performance which has in turn driven inflows,” said Mahesh Mirpuri, Proprietor, Invest Mutual, a Chennai-based mutual fund distributor.
On the other hand, LIC Mutual Fund Asset Management Ltd saw a 24% contraction in AUM, while Sundaram Asset Management Co. Ltd witnessed an 11% contraction.
A financial planner, on the condition of anonymity, indicated that the contraction in Sundaram Mutual Fund may be on account of a clampdown on closed-end funds by the Securities and Exchange Board of India (Sebi). The regulator capped the total expense ratio (TER) for closed-end equity schemes at 1.25% and non-equity schemes at 1% through a notification issued in September 2018. Sundaram Mutual Fund had launched multiple such schemes over the past few years.