Assets under management (AUM) of major mutual fund houses in India have grown at a compounded annual growth rate of almost 29.2% in the past four years (between August 31, 2006, and August 31, 2009).
According to an analyst from an MF house, ?The growth in AUM of mutual funds has to be seen in the context of the base AUM. An effective increase in the equity funds corpus is to be looked at for a base growth comparison.Market capitalisation also plays a role in the AUM growth. It will not be out of place to mention that the marketing and sale of a fund house also reflect in the resultant AUM growth.?
In actual value terms, the AUM of 21 MF houses increased 115% to Rs 4.92 lakh crore as on August 31, 2009, from Rs 2.28 lakh crore on August 31, 2006.
Among the fund houses, Reliance MF recorded the highest growth rate in AUM, followed by LIC MF and Taurus MF. Reliance registered a jump of 308% during the study period, taking its total assets to Rs 1.17 lakh crore at the end of August 2009.
In terms of the rate of growth reflected in a year-on-year growth percentage of average assets, Canara Robeco, LIC, Taurus and UTI registered steady growth during the period. The AUM growth of UTI increased from 14.4% in August 2007 to 57.5% in August 2009.
However, Franklin Templeton, DBS Chola and Tata MF witnessed lower growth rates. The AUM of Franklin Templeton increased to Rs 28,866 crore from Rs 24,198 crore in August 2006. Similarly, Tata?s assets rose to Rs 20,489 crore from Rs 12,562 crore in August 2006.
On the other hand, a steady downward trend in AUM growth was seen in the case of Sundaram BNP Paribas MF and SBI MF. The AUM growth of SBI steadily decreased from 55.8% in August 2007 to 15.1% in August 2009.
As on August 31, 2006, the top three MF houses on the basis of AUM were UTI, ICICI Prudential and Reliance. But this year, the order has been altered with Reliance leading the fray, followed by ICICI Prudential and UTI.
