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|
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%|
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%|
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!