MF AUM touches record high in Mar-21 as SBI MF builds a lead

The AUM accretion is coming purely from the rally in the Nifty and Sensex. Of course, inflows have been positive into debt funds and passive funds during the fiscal.

Apr 08, 2021 08:04 IST India Infoline News Service

On 06 April, AMFI disclosed average AUMs of the 43 registered mutual fund AMCs in India as on 31 March 2021. While SIPs continue to be robust, equity funds have been seeing negative flows for the last 8 months in succession. The AUM accretion is coming purely from the rally in the Nifty and Sensex. Of course, inflows have been positive into debt funds and passive funds during the fiscal. 

Data Source: AMFI
AUM leadership is not as close as it was last year with SBI MF taking a 20% lead over its nearest competitors; HDFC MF and ICICI Pru MF. Even as HDFC and ICICI Pru are almost neck-to-neck, there is a lot of action happening down the line. For example, Kotak MF has shown rapid growth and along with Nippon India MF, it is giving a tough run for Birla MF. Similarly, Axis has seen a quantum leap in its AUM even as Templeton dropped out of the top-10 list after a long time.

Is concentration of AUM still an issue?

It would be naïve to believe that AUM is spread out very democratically. Out of the 43 registered AMCs with SEBI today, 50% of these AMCs have an AUM of less than Rs10,000cr, hardly a sustainable level. In previous consolidation moves, most of the foreign funds exited Indian MF business in last few years. The latest round of consolidation involves Sundaram MF taking over Principal MF. But the table below captures the concentration of AUM in a handful of funds a lot better.

Frequency Distribution AUM of the Funds (Rs. Crore) Share of Overall AUM (%)
Top-3 Funds by AUM 13,38,342 41.35%
Top-6 Funds by AUM 20,72,906 64.05%
Top-10 Funds by AUM 26,72,335 82.57%
Top-15 Funds by AUM 30,12,853 93.09%
Top-20 Funds by AUM 31,54,939 97.48%
Overall AUM (Mar-21) 32,36,590
Data Source: AMFI

Out of 43 AMCs, the top 10 account for nearly 83% of the overall AUM. By the time you cover the top-15 funds, you have covered over 93% of the AUM with the remaining 28 AMCs jointly accounting for 7% of the AUM. If you look at the top-10 players by AUM, 6 out of them are affiliated to large banks. So, the bancassurance model that has worked best in cross-selling mutual fund products.

Which AMCs showed best growth over Dec-20?

On a QOQ basis compared to Dec-20, the overall AUM of the industry grew 8.14%. A handful of AMCs showed negative growth in AUM like Yes Mutual Fund, Indiabulls MF, IDBI MF, JM MF, BOI AXA MF and IL&FS MF, all for obvious reasons. We capture the top-10 AMCs in terms of QOQ growth. To avoid low-base effect, we only consider funds with AUM above Rs20,000cr.

Fund Name AUM (Rs. In Crore) QOQ Growth in AUM (%)
Canara Robeco Mutual Fund                               28,273 21.82%
Mirae Asset Mutual Fund                               69,773 19.98%
Motilal Oswal Mutual Fund                               27,993 15.75%
Edelweiss Mutual Fund                               52,415 14.17%
Invesco Mutual Fund                               36,841 12.36%
Axis Mutual Fund                            1,96,862 10.75%
UTI Mutual Fund                            1,82,853 10.58%
SBI Mutual Fund                            5,05,373 10.50%
DSP Mutual Fund                               97,386 8.83%
Kotak Mahindra Mutual Fund                            2,34,743 8.14%
Data Source: AMFI

While Canara Robeco and Mirae have shown good traction in terms of QOQ growth, you must take these numbers with a pinch of salt. For example, a 10.5% growth in the AUM of SBI MF is a lot more significant than a 21.8% growth in the AUM of Canara Robeco. That was one reason we restricted the ranking to funds with AUM of over Rs20,000cr.

Which AMCs showed best growth over Mar-20?

On yoy basis compared to Mar-20, overall AUM of MF industry grew by an impressive 19.17%. There were the standard negative growth fund like Yes Mutual Fund, Indiabulls MF, IDBI MF, JM MF, BOI AXA MF and IL&FS MF. However, on a yoy basis, Franklin Templeton saw AUM falling -28.9% while Baroda MF AUM fell by -18.4%. We capture the top-10 AMCs on yoy AUM growth and again restrict to funds with AUM above Rs20,000cr.

Fund Name AUM (Rs. In Crore) YOY Growth in AUM (%)
Edelweiss Mutual Fund                               52,415 107.58%
Mirae Asset Mutual Fund                               69,773 61.51%
Canara Robeco Mutual Fund                               28,273 57.58%
Invesco Mutual Fund                               36,841 43.45%
Axis Mutual Fund                            1,96,862 42.13%
Motilal Oswal Mutual Fund                               27,993 38.69%
SBI Mutual Fund                            5,05,373 35.14%
Kotak Mahindra Mutual Fund                            2,34,743 25.95%
DSP Mutual Fund                               97,386 21.09%
UTI Mutual Fund                            1,82,853 20.68%
Data Source: AMFI

Edelweiss MF doubled its AUM on a yoy basis with a lot of focus on bond index products. However, Mirae and Canara Robeco have also done extremely well in terms of yoy accretion in AUM. But what is really appreciable is the growth shown by the big AUM players like SBI (35.14%), Axis MF (42.13%), Kotak MF (25.95%) etc. FY21 AUM has been largely supported by the market rally. FY22 could be the real test!

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