Mutual funds are not 'sahi' for fund managers: Data
High-ranking insider holding is just 0.13% of the Rs 7.93 lakh crore combined assets
In the country’s biggest equity mutual funds, asset management company (AMC) boards of 63% of the funds, and managers of nearly three-fourths of the funds have invested their personal money in their own assets, according to a Hindu BusinessLine report.
According to Sebi norms, key AMC employees are required to compulsorily invest their compensation in the funds they manage.
Key AMC employees hold Rs 1,050 crore of their own money in the 42 biggest actively managed equity mutual funds. However, high-ranking insider holding is just 0.13% of the Rs 7.93 lakh crore combined assets of these schemes, according to the report.
The average AUM in these 42 equity mutual funds is Rs 13, 942 crore. Of this, AMC boards hold the biggest stake at Rs 665 crore, fund managers at Rs 215 crore, and Rs 170 crore by key managerial personnel.
In value terms, the five schemes with the highest AMC board holding are Motilal Oswal Flexi Cap (Rs 545 crore), Kotak Emerging Equity (Rs 21.19 crore), Axis Bluechip (Rs 19.58 crore), Axis Focused 25 (Rs 16.85 crore) and Aditya Birla Sun Life Frontline Equity (Rs 13.34 crore), shows the BusinessLine report.
Out of the 42 equity funds, 31 schemes (74%) have seen their fund managers investing their own money in the funds they manage. In terms of investment, fund managers of HDFC Flexi Cap lead the way with Rs 106.29 crore, followed by HDFC Top 100 with Rs 24.72 crore.
The record by other key managerial personnel (KMPs) is better. Out of the 42 biggest equity funds, 40 schemes or 95% of them have investments of other KMPs. In value terms, schemes with the highest other KMP holding are Motilal Oswal Flexi Cap (₹51.76 crore), HDFC Flexi Cap (₹48.22 crore) and SBI Small Cap (₹10.33 crore).