MFs assets grow by 13.8% to touch Rs 13.53 lakh crore

The Mutual fund industry saw its asset size grow by 13.79% for the financial year ended March 2016. The average assets under management (AUM) of the industry grew by Rs 1.64 lakh crore to rise to Rs 13.53 lakh crore in the financial year ended March against Rs 11.89 lakh crore at the end of 2015.

Industry sources attribute this growth to strong flows in equities and balanced funds.

During the year, ICICI Prudential Mutual Fund overtook HDFC Mutual Fund to become the countrys largest AMC by asset size. It managed to stay ahead of HDFC by a small margin of Rs 100 crore in terms of average AUM for the quarter ended March 2016. SBI Mutual Fund moved to the fifth rank in terms of assets going ahead of UTI Mutual Fund by about Rs 500 crore and its AUM is now Rs 1.07 crore, largely on account of inflows from the Employees Provident Fund Organisaton ( EPFO)

The year saw increased consolidation in the industry with as many as three foreign players exiting the industry. Edelweiss AMC bought JP Morgan AMC, Reliance AMC acquired Goldman Sachs and Deutsche Mutual Fund selling its fund management business to Pramerica.