Indian mutual funds saw their average assets under management at Rs 18.29 lakh crore in the January-March quarter of 2017, a surge of Rs 4.76 lakh crore over the January-March quarter of 2016. More than half of the increase in average assets was seen in the top five fund houses. ICICI Prudential MF, HDFC MF, Birla Sun Life MF, Reliance MF and SBI MF collectively saw their average assets rise by around Rs 2.89 lakh crore. Data from Association of Mutual Funds in India (Amfi) also show that of the 40 fund houses, only four fund houses saw a fall in their average assets under management for January-March 2017.
Mutual fund experts say the top fund houses continue to remain in a dominant position largely because of their brand name and strong performance of their equity schemes. Currently, ICICI Prudential AMC is leader with average assets under management of `2,42,961.31 crore in quarter of January-March,2017 a rise by Rs 67,080 crore or 38.14% as against Rs 1,75,880.87 crore seen in the quarter of Jan-March,2016. While HDFC MF stood second at Rs 2,37177.61 crore in the quarter of January-March,2017 a rise by Rs 61,398.22 crore.
Nimesh Shah, MD and CEO at ICICI Prudential Asset Management Company (AMC), said, “We are witnessing a more meaningful shift of retail investors from physical assets to financial assets. The common man is aware about the benefits of systematic investment plan (SIP) and you need not explain that to them. This is a very healthy sign. Investors seem to be aligning their SIP investments with their long-term goals. Today, there are more than 1.3 crore SIP accounts and the monthly SIP book has risen to nearly Rs 4,000 crore per month.”
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Net inflows into equity funds (which include equity, equity-linked saving schemes and other ETFs) for the financial year 2016-17 stood at Rs 94,421 crore, the highest in last 10 years. Continuous participation from retail investors through systematic investment plans (SIPs) coupled with positive returns from equity funds and success of investors awareness programmes, can be attributed to such strong flows into equity funds, says market participants.
Though many of the top players continue to have higher market share, many of the small fund houses like Mirae Asset, Motilal Oswal MF and Quantum MF also saw growth of in the range of 51-138%, largely due to the performance of their equity schemes.