MUMBAI: The domestic mutual fund industry reported a significant increase in its assets under management (AUM) in the March 2021 quarter. Average assets under management rose 19 per cent to Rs 32.1 lakh crore in the March 2021 quarter from Rs 27.03 lakh crore in the March 2020 quarter. The average AUM in equities suffered a setback in the March 2020 quarter from a sell-out caused by the epidemic.
However, if we compare the average AUM from the end of January 2020, there is an increase of 14 per cent and it has been Rs 28.2 lakh crore. Due to the strong growth in the market, assets increased. The benchmark Sensex rose nearly 70 per cent in FY 2021, the biggest year-over-year gain in 11 years. SBI MF managed to hold the first position. Its average assets under management stood at Rs 5.04 lakh crore in the March 2021 quarter, up 35 per cent year-on-year. This information came from data from industry body Amphi.
The fund house has widened the gap in this matter from HDFC MF. The figures for both MFs were close to a year ago. Currently, SBI MF's AUM is about 20% higher than HDFC MF. Among the 10 leading companies, Axis MF recorded the highest growth in average AUM and rose 42 per cent to Rs 1.96 lakh crore in the January-March quarter.
A senior official of SBI MF said that the steps taken by the company to expand the business in the last few years helped it to register such an increase. A top SBI MF official said, "Since 2014-15, we have invested a lot on expanding our reach across the country." We are continuing to open new branches and are also expanding into distributor partners. The performance of our fund has improved a lot in the last few years and all these things helped us in a strong growth. The sharp increase in assets is good for the fund house as State Bank of India is considering listing its MF unit in the near future.
Industry participants said that in the year 2018, after the debt crisis caused by IL&FS, investors turned to big brands. SBI MF and some other bank-backed fund houses have been instrumental in taking advantage of this trend. HDFC MF, ranked second, had an average AUM of Rs 4.15 lakh crore, higher than ICICI Prudential MF's Rs 4.05 lakh crore.
Franklin Templeton MF's ranking is 11th in terms of asset size compared to last year's ninth position. Small and medium-sized fund houses such as PPFAS MF, ITI MF, Client MF etc. have registered a growth of over 100 per cent.