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Emerging mutual funds such as Edelweiss, Mirae, Motilal Oswal, Axis and Union mutual funds have registered an impressive growth in assets under management in the last 10 years, albeit on lower base.
Edelweiss MF asset recorded an increase of 71 per cent on compounded annual growth rate as of June-end to ₹54,400 crore against ₹258 crore logged in June 2011 while that of Mirae Asset MF and Motilal Oswal MF assets were up 68 per cent and 55 per cent to ₹77,674 crore (₹425 crore) and ₹26,780 crore (₹345 crore), according to a Fortune Planners Investment Services study.
About 10 foreign fund houses have either merged or exited India in last 10 years and eleven fund houses are yet to complete 10 years of existence.
Kalpesh Damani, a mutual fund distributor and advisor, said the differentiated product offerings and consistent performance aided boom in equity markets have helped smaller fund houses to gain market share taking on larger players with established brands.
For some, AUM dips too
Incidentally, IDBI Mutual Fund, JM Financial MF and Taurus MF are the only fund houses to have recorded negative growth in asset under management in last 10 years.
Interestingly, Axis MF asset under management was up 40 per cent CAGR to ₹2.08 lakh crore (₹7,453 crore) while Union MF registered a CAGR of 35 per cent to ₹5,916 crore (₹298 crore).
Consistent performers
Among top players, SBI MF has emerged as a consistent performer by registered a CAGR of 27 per cent to ₹5.23 lakh crore (₹47,874 crore) while that of ICICI MF and HDFC MF was up 18 per cent and 16 per cent at ₹4.16 lakh crore (₹79,760 crore) and ₹4.16 lakh crore (₹92,033 crore).
Kotak MF and Aditya Birla MF assets were up 22 per cent and 15 per cent CAGR at ₹2.46 lakh crore (₹33,994 crore) and ₹2.75 lakh crore (₹67,475 crore).
Radhika Gupta, Managing Director & CEO, Edelweiss AMC, said the fund house has seen a stupendous growth since 2016 after the acquisition of JP Morgan Mutual Fund, which was leveraged in the last few years. A major part of the growth has come organically post the acquisition with a focus on debt passives, hybrid funds and international funds.
“We aim to continue growing faster than our peers in coming years as there are many opportunities in various product segments that are left unexplored,” she added. Digital will be a big enabler for growth as it will help expand reach without having the need of physical presence across locations and it is an important area of focus at Edelweiss AMC, she said.
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