Nippon India Mutual Fund, ICICI MF, and HDFC MF are the top 10 fund houses to have registered double-digit growth in average assets under management last fiscal year. Investors preferred to book profit at frequent intervals as markets hit a new high.

While Nippon India MF’s average AUM increased 14 per cent to ₹4.31 lakh crore in the fiscal ended March, compared to ₹3.78 lakh crore in FY’23, ICICI MF and HDFC MF logged an 11 per cent rise to ₹6.83 lakh crore (₹6.14 lakh crore) and ₹6.12 lakh crore (₹5.51 lakh crore), respectively.

SBI MF topped the table with an average AUM jump of 7 per cent at ₹9.14 lakh crore (₹8.51 lakh crore). Beyond the top 10, Tata MF registered a 12 per cent rise in average AUM to ₹1.47 lakh crore (₹1.32 lakh crore).

Overall, the average AUM last fiscal was up 10 per cent at ₹54.13 lakh crore (₹49.22 lakh crore), largely aided by the rally in the market on the back of steady inflows from retail investors through mutual funds.

The benchmarks Sensex and Nifty have gone up by 25 per cent and 29 per cent, respectively, while Nifty Small Cap 100 and Nifty Mid Cap 100 have zoomed 70 per cent and 60 per cent even as the market regulator SEBI raised concern over valuation.

Foreign portfolio investors contributed a whopping ₹2.06 lakh crore last fiscal year against being a net seller to the tune of ₹1.7 lakh crore in FY22.

Sundeep Sikka, ED and CEO of Nippon India Mutual Fund, said the focus on retail investors, especially outside the top 30 cities has encouraged more investors to opt for systematic investment plans and invest during market dips.

The schemes’ performance, strong risk management, and investments in digital infrastructure have also been the key drivers for the growth, he added. These efforts, along with effective communication with retail investors through distributor partners, have allowed retail investors to make informed decisions and stay invested with the fund house for the long term, he added.

Palka Arora Chopra, Director, Master Capital Services, said that after equity, the debt market is expected to make a comeback in this year, with long-term debt funds offering double-digit returns . These funds are expected to have mark-to-market gains when the interest rate reversal cycle occurs.

“India is at the right place, at the right time. As India is striding to be a $5 trillion economy in the next 5-8 years, we expect the growth trend to continue as Indian markets reflected global investors’ optimism and trust,” she added.

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