Top 5 MFs control 40% of total AUM
Indian mutual fund industry has crossed the Rs 5 trillion mark in assets for the first time, but two-fifth of the total is controlled by top five fund houses.
By PTI |
MUMBAI: Indian mutual fund industry has crossed the Rs 5 trillion mark in assets for the first time, but two-fifth of the total is controlled by top five fund houses. Total assets under management (AUM) of 32 fund houses in the country rose to a record high of Rs 5,56,729 crore at the end of October, according to the data available with the industry association AMFI. This represents an increase of Rs 79,740 crore or about 17% in October from Rs 4,76,990 crore a month ago. All the 32 fund houses recorded an increase in their AUM during the reviewed period.
However, the top five fund houses-Reliance MF, ICICI Prudential, UTI MF, HDFC MF and Franklin Templeton-together own assets worth nearly Rs 2 trillion, which is about 40% of AUM of all the fund houses. The total AUM of the remaining 27 fund houses currently stands at about Rs 3 trillion.
The total AUM of five smallest fund houses-Taurus, Sahara, Escorts, BoB and Quantum MFs-is in fact less than Rs 1,000 crore. In comparison, the AUM of all the top five fund houses currently stands at over Rs 32,000 crore. It was Quantum MF that recorded the biggest growth in percentage terms with a 16% rise in its AUM, followed by HDFC MF.
The second biggest growth was recorded by Reliance MF at 13.5%, followed by Taurus (12.5%) and SBI (12%). Reliance MF, part of Anil Ambani group firm Reliance Capital, retained its top position with its AUM growing 13.5% in October to Rs 79,973 crore. It was followed by ICICI Prudential with an AUM of Rs 56,212 crore.
UTI MF remained at the third position with an AUM of Rs 51,753 crore, followed by HDFC MF (Rs 47,745 crore) and Franklin Templeton (Rs 32,041 crore) among the top five players. In terms of absolute value, Reliance MF gained Rs 9,533 crore, while ICICI Prudential’s AUM rose by Rs 5,842 crore in October this year and UTI MF saw an increase of Rs 6,750 crore.
Analysts said the sharp increase in the AUM is mostly driven by a sharp rally in the share prices of stocks held in mutual funds’ portfolios and inflow into new as well as existing equity-focused schemes. Positions liquidated by the funds after a sharp rally on the bourses also contributed to the increase in assets.
In the past one year, the industry-wide total AUM has increased by about Rs 2,50,000 crore or about 45% from Rs 3,07,376 crore at the end of October 2006.
However, the top five fund houses-Reliance MF, ICICI Prudential, UTI MF, HDFC MF and Franklin Templeton-together own assets worth nearly Rs 2 trillion, which is about 40% of AUM of all the fund houses. The total AUM of the remaining 27 fund houses currently stands at about Rs 3 trillion.
The total AUM of five smallest fund houses-Taurus, Sahara, Escorts, BoB and Quantum MFs-is in fact less than Rs 1,000 crore. In comparison, the AUM of all the top five fund houses currently stands at over Rs 32,000 crore. It was Quantum MF that recorded the biggest growth in percentage terms with a 16% rise in its AUM, followed by HDFC MF.
The second biggest growth was recorded by Reliance MF at 13.5%, followed by Taurus (12.5%) and SBI (12%). Reliance MF, part of Anil Ambani group firm Reliance Capital, retained its top position with its AUM growing 13.5% in October to Rs 79,973 crore. It was followed by ICICI Prudential with an AUM of Rs 56,212 crore.
UTI MF remained at the third position with an AUM of Rs 51,753 crore, followed by HDFC MF (Rs 47,745 crore) and Franklin Templeton (Rs 32,041 crore) among the top five players. In terms of absolute value, Reliance MF gained Rs 9,533 crore, while ICICI Prudential’s AUM rose by Rs 5,842 crore in October this year and UTI MF saw an increase of Rs 6,750 crore.
Analysts said the sharp increase in the AUM is mostly driven by a sharp rally in the share prices of stocks held in mutual funds’ portfolios and inflow into new as well as existing equity-focused schemes. Positions liquidated by the funds after a sharp rally on the bourses also contributed to the increase in assets.
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In the past one year, the industry-wide total AUM has increased by about Rs 2,50,000 crore or about 45% from Rs 3,07,376 crore at the end of October 2006.
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