Mutual fund industry’s asset base rose by 12 percent to Rs 27.6 lakh crore during the September 2020 quarter, primarily on account of rebound in markets. The average asset under management (AAUM) of the industry, comprising 45 players, was at Rs 24.63 lakh crore in April-June quarter this year, according to data by Association of Mutual Funds in India (Amfi).
All top 10 fund houses — SBI MF, HDFC MF, ICICI Prudential MF, Aditya Birla Sunlife MF, Nippon India MF, Kotak MF, Axis MF,UTI MF, IDFC MF and DSP MF — witnessed an increase in their respective average AUMs during the September quarter. Notably, Axis MF, UTI MF, SBI MF and Kotak MF have witnessed an increase in the range of 14-16 percent in their assets base beating the average industry’s growth of 12 percent.
According to Vidya Bala, co-founder of Primeinvestor.in, market rebound caused the growth in the industry’s AUM on a quarter-on-quarter basis. ”Otherwise steady outflows from equity funds is a sign of lack of confidence in funds by retail investors. The uncertainty caused by COVID-19 has also prompted investors to redeem and keep assets in cash,” she added.
Omkeshwar Singh, Head RankMF at Samco Securities, said theAAUM of September quarter is higher compared to June quarter majorly due to appreciation in value of existing holding in equity-oriented funds — rise on the equity markets. ”In the debt side, there has been incremental inflows of nearly Rs 1 lakh crore and mostly in July 2020,” he added.
SBI Mutual Fund, which continues to be the largest fund house in the country, saw its asset base growing 15.6 percent to Rs 4,21,364 crore. It had an average AUM of Rs 3,64,363 crore in the preceding quarter. HDFC MF saw its asset base rising by 5.4 percent to Rs 3,75,516 crore during the period under review, from Rs 3,56,183 crore in the June quarter.
ICICI Prudential MF posted an average AUM of Rs 3,60,049 crore in the September quarter, against Rs 3,26,291 crore in June quarter, indicating an increase of 10.3 percent. Aditya Birla Sunlife MF and Nippon India MF have seen their average AUM growing by 11 percent each to Rs 2,38,674 crore and a little over Rs 2 lakh crore respectively.
Kotak MF’ average AUM spiked by 14.5 percent to Rs 1,91,598 crore in three months ended September 30 from Rs 1,67,326 crore in the preceding quarter. The asset base of Axis MF climbed by 16.3 percent to Rs 1,56,255 crore in the September quarter while that of UTI MF accelerated by 16.1 percent to Rs 1,55,190 crore.
UTI MF, which has recently concluded its initial public offering, had an AAUM of Rs 1,33,631 crore in the June quarter. The average AAUM ofIDFC MF and DSP MF went up by 12.3 percent and 12 percent to Rs 1,14,335 crore and Rs 82,286 crore respectively. In the June quarter, the industry had registered an 8 percent decline in AUM on account of outflow pressure both in debt and equity.