Top 5 mutual fund houses leaders and AMC dominance across categories
As a mutual fund investor, it's crucial to recognize that greater AUM does not assure higher returns
New Delhi: Mutual fund investments are proving to be a splendid option. Due to better returns, people are showing considerable interest in them. According to AMFI, the assets under management (AUM) of the mutual fund industry reached Rs. 58.59 lakh crore in May 2024. This industry had an AUM of Rs. 10.11 lakh crore on May 31, 2014. In the last ten years, it has grown nearly six times.
Top 5 AMCs
So, who are the top 5 leaders in the mutual fund industry and which asset management company (AMC) dominates which category?
As per the monthly average AUM, SBI Mutual Fund. Leads the industry. In May 2024, this company had an AUM of Rs. 9.77 lakh crore. Based on AUM, SBI manages funds in Debt and Exchange Traded Funds (ETFs). SBI AMC manages Rs. 2.35 lakh crore in debt funds, Rs. 4.37 lakh crore in equity, and Rs. 3.03 lakh crore in ETFs. In managing ETFs, SBI is well ahead of other companies.
SBI Small Cap Fund, SBI Bluechip Fund, SBI Focused Equity Fund, SBI Magnum Midcap Fund, and SBI Flexicap Fund are popular schemes of this fund house. The SBI Small Cap Fund is particularly prominent. This scheme is 15 years old. Investors have received an average annual return of more than 20% (20.81%) from the beginning. The AUM of this fund is Rs. 28,365 crore.
There are a total of 44 companies in the country’s mutual fund industry. Alone, SBI Small Cap Fund’s AUM is larger than that of 21 companies in the industry. According to rankings, PGIM India ranks 24th with an AUM of Rs. 23,709 crore. Old Bridge AMC has the lowest AUM of Rs. 348 crore.
In terms of assets, ICICI Prudential is the second-largest mutual fund company. This company has an AUM of Rs. 7.46 lakh crore. It has nearly Rs. 4.49 lakh crore exposure in equity, which is about Rs. 12,000 crore more than SBI. Thus, ICICI Prudential is the leader in equity funds in the mutual fund industry. Banking and Financial Services Fund, Bharat Consumption Fund, ICICI Pru Blue Chip Fund, Business Cycle Fund, and Commodities Fund are the major schemes of this company. According to the figures of June 18, in the last year, these schemes have yielded returns of 20.51%, 41.27%, 39.89%, 49.16%, and 46.81%, respectively.
HDFC is the third-largest company in the mutual fund industry. At the end of May 2024, its AUM was Rs. 6.67 lakh crore. The company has an investment of Rs. 2.10 lakh crore in debt funds, Rs. 4.45 lakh crore in equity, and Rs. 12,192 crore in ETFs. The company manages the most funds in the equity segment. HDFC’s Small Cap Fund, Focused 30 Fund, and Flexi Cap Fund are popular schemes. Investors have received annual returns of 20.87%, 16%, and 17.31% CAGR from these schemes.
With an AUM of Rs. 6.67 lakh crore, Nippon India is the country’s fourth-largest mutual fund company… Nippon India has an exposure of Rs. 1.12 lakh crore in debt funds, Rs. 2.39 lakh crore in equity, and Rs. 1.28 lakh crore in ETFs. In terms of returns, Nippon India’s Small Cap Fund is a popular scheme. This scheme started in September 2010. According to the figures of May 31, this fund has provided an average annual return of more than 22% (22.19%) since inception.
In the past year, the Nippon Small Cap Fund has provided average returns of 52.71%, 32.32% over 3 years, and 30.62% over 5 years. Nippon India Vision Fund, Nippon India Large Cap Fund, and Nippon India Quant Fund are the company’s popular schemes. The company also has funds like Nippon India ETF Gold BeES and Nippon India Silver ETF in the ETF commodity category. Gold BeES scheme is performing well.
Kotak Mahindra is the fifth-largest mutual fund company. The company has an AUM of Rs. 4.15 lakh crore. Kotak Mahindra has an investment of Rs. 1.45 lakh crore in debt funds, Rs. 2.55 lakh crore in equity, and Rs. 14,332 crore in ETFs. The company manages the most funds in the equity segment. Kotak Mahindra’s KOTAK SPECIAL OPP FUND, Kotak Multicap Fund, Kotak India EQ Contra Fund, Kotak Manufacture In India Fund, and Kotak ESG Exclusionary Strategy Fund are popular schemes. These schemes have provided returns ranging from 15% to 27% CAGR since inception.
If you are a mutual fund investor, it is essential to understand that higher AUM does not guarantee higher returns. If a fund’s size is small, it does not necessarily mean that returns will be lower, and you should not consider investing in it. In terms of returns, schemes of smaller companies are also performing well.
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