MF industry assets base to Rs 27.6 lakh cr

Axis MF, UTI MF, SBI MF and Kotak MF have witnessed an increase in the range of 14-16 per cent in their assets base beating the average industry's growth of 12 per cent.

New Delhi: Mutual fund industry’s asset base rose by 12 per cent to Rs 27.6 lakh crore during the September 2020 quarter, primarily on account of rebound in markets.

The average asset under management (AAUM) of the industry, comprising 45 players, was at Rs 24.63 lakh crore in April-June quarter this year, according to data by Association of Mutual Funds in India (Amfi).

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All top 10 fund houses — SBI MF, HDFC MF, ICICI Prudential MF, Aditya Birla Sunlife MF, Nippon India MF, Kotak MF, Axis MF, UTI MF, IDFC MF and DSP MF — witnessed an increase in their respective average AUMs during the September quarter.

Notably, Axis MF, UTI MF, SBI MF and Kotak MF have witnessed an increase in the range of 14-16 per cent in their assets base beating the average industry’s growth of 12 per cent.

According to Vidya Bala, co-founder of Primeinvestor.in, market rebound caused the growth in the industry’s AUM on a quarter-on quarter basis.

“Otherwise steady outflows from equity funds is a sign of lack of confidence in funds by retail investors. The uncertainty caused by COVID-19 has also prompted investors to redeem and keep assets in cash,” she added.

Omkeshwar Singh, Head RankMF at Samco Securities, said 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.

“In the debt side, there has been incremental inflows of nearly Rs 1 lakh crore and mostly in July 2020,” he added.