"The AAUM 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," said Omkeshwar Singh, Head RankMF at Samco Securities.
The shareholding of US investment firm T Rowe Price also went down to 23% from the 26% after the IPO.
Mutual funds’ asset base rose by 12 per cent to Rs 27.6 lakh crore in the quarter ended September 30 mainly due to appreciation in the value of their existing holding in equity-oriented funds.
The average asset under management (AAUM) of the industry, comprising 45 players, was at Rs 24.63 lakh crore in April-June quarter, according to data by Association of Mutual Funds in India (Amfi).
“The AAUM 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,” said Omkeshwar Singh, Head RankMF at Samco Securities.
“In debt side, there has been incremental inflows of nearly Rs 1 lakh crore and mostly in July 2020,” he added.
All the top five fund houses, SBI MF, HDFC MF, ICICI Prudential MF, Aditya Birla Sunlife MF and Nippon India MF witnessed an increase in their respective average AUMs during the September quarter.
With an asset base of Rs 4,21,364 crore, SBI Mutual Fund continue to be the largest fund house in the country during the September quarter 2020. It had an average AUM of Rs 3,64,363 crore in the preceding quarter. This indicates a growth of 15.6 per cent on quarter-on-quarter basis.
HDFC MF, which is at the second position, saw its asset base rising by 5.4 per cent to Rs 3,75,516 crore during the period under review from Rs 3,56,183 crore in June quarter.
This is followed by ICICI Prudential MF at the third rank with an average AUM of Rs 3,60,049 crore in September quarter, a climb of 10.3 per cent from Rs 3,46,163 crore in June quarter.
Aditya Birla Sunlife MF, the fourth largest fund house, has seen its average AUM growing by 11 per cent to Rs 2,38,674 crore from Rs 2,14,592 crore.
Nippon India MF’s average AUM rose by 11 per cent to over Rs 2 lakh crore in September quarter from Rs 1.8 lakh crore in the preceding quarter. The average asset base of Kotak MF grew by 14.5 per cent to Rs 1,91,598 crore while that of UTI MF surged by 16 per cent to Rs 1,33,361 crore.
In June quarter, the industry had registered an 8 per cent decline in AUM on account of outflow pressure both in debt and equity.
“While debt outflows were triggered by debt events such as the Franklin Templeton issue, profit booking on rally led to equity inflows. Besides, lower investment, with economic uncertainty threatening jobs and leading to pay cuts, could be the reason for decline in the assets base, moreover, fresh inflows were also relatively weak,” Vidya Bala, co-founder of Primeinvestor.in had said.