Thanks to the bull run in the equity market, SBI Mutual Fund has not only managed to retain its numero uno position in terms of average asset under management in the December quarter but was also able to widen the gap with the second placed ICICI MF.
SBI MF has also become the first fund house to clock an average AUM of over ₹6 lakh crore with systematic investment book of ₹1,600 crore a month. The average AUM, excluding the fund of funds, of SBI MF in the December quarter increased nine per cent to ₹6.28 lakh crore against ₹5.78 lakh crore logged in September quarter.
ICICI MF average asset jumped four per cent to ₹4.67 lakh crore (₹4.47 lakh crore). SBI MF increased the gap with ICICI MF by ₹1.61 lakh crore in the December quarter compared to ₹1.31 lakh crore in September quarter, according to Association of Mutual Funds in India data released on Friday.
BAF helps SBI race ahead
DP Singh, Chief Business Officer, SBI MF, said besides steady inflows, the advantage of tremendous response for Balanced Advantage NFO made in August was fully captured in the December quarter while it reflected for only one month in September quarter. SBI MF had collected ₹14,550 crore through Balanced Advantage NFO.
Moreover, inflow of $3 billion a month through SIP and investment of insurance premium, EPFO and National Pension Scheme have been holding the market even as foreign investors booked profit, he said.
With overall industry AUM growth of about ₹6 lakh crore last year, he added SBI MF accounted for ₹1.23 lakh crore or 20 per cent of the industry’s growth.
HDFC MF retained the third position at ₹4.47 lakh crore (₹4.38 lakh crore), while Birla MF asset fell by a tad to ₹2.98 lakh crore (₹3 lakh crore) but maintained its fourth slot.
IDFC MF also registered a small fall in AUM at ₹1.25 lakh crore (₹1.26 lakh crore) but held on to its ninth position. With an asset of ₹83,55,437 crore, Tata MF toppled L&T MF for the twelfth position
The benchmark Sensex had rallied whopping 6,539 points in September quarter while it plunged by 1,052 points in December quarter.
The average asset of the mutual fund industry increased six per cent to ₹38.22 lakh crore against ₹36.02 lakh crore in the period under review as the market rallied in the better half of last quarter.
Going ahead, Singh said the inflows into the industry will increase as most of the competing assets such as real estate, gold and fixed deposit interest rate remaining low. Investors will continue to park their money in mutual fund as they are more liquid and provide steady returns.