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How Asset Managers Fared In Fourth Quarter

Assets of HDFC Mutual Fund and SBI Mutual Fund rose the most among India’s five largest asset managers in the fourth quarter, aided by corporate and pension inflows.

While assets under management jumped 30 percent year-on-year for SBI Mutual Fund, they rose 13 percent for HDFC AMC, India's largest fund house, in the three months ended March, according to data by Association of Mutual Funds. By comparison, growth was slower for No. 2 asset manager ICICI Mutual Fund. Aditya Birla Sun Life and Reliance Mutual Fund saw a contraction.

Large amount of corporate money flowing into liquid schemes of HDFC and ICICI asset management firms mainly led to growth of these fund houses, especially after IL&FS debt crisis, and Dewan Housing Finance Ltd. and Essel Group issues, according to Kaustubh Belapurkar, India investment adviser at Morningstar India. “Consistent EPFO flows aided the performance of SBI Mutual Fund.”

Overall, the average assets of 40 mutual funds rose 6.1 percent on a yearly basis in the January-March quarter. They added about Rs 1.40 lakh crore to reach Rs 24.46 lakh crore in total assets.

The last quarter was a mixed one with challenges due to default crisis in debt papers as well as stress in mid- and small-cap companies, Tarun Birani, founder and chief executive officer of Thinkingman.in Advisors, said. But despite the volatile market conditions, the industry clocked healthy growth mainly on account of foreign inflows into both equity and debt, he said, adding that it took the markets higher and resulted in higher flows through systematic investment plans.

Also read: The Mutual Fund Show: Lessons Investors Should Remember In 2019-20

Top Funds By Asset Addition

SBI Mutual Fund added the highest assets worth Rs 66,157 crore over the year-ago period, followed by HDFC MF and Kotak MF.

Top Funds By Growth

Assets of Shriram, IIFL and Parag Parikh mutual funds jumped 190, 106 and 78 percent, respectively, over the previous year. But they have less than 1 percent market share each.

Among the funds having at least 1 percent share, Miraw Asset Mutual Fund’s assets grew at the fastest pace, followed by SBI Mutual Fund. Kaustubh said Mirae Asset Mutual Fund’s consistent track drove the growth.

Also read: The Best Performing Mutual Funds Of FY19