The Indian mutual fund Industry saw a significant surge in its assets under management (AUM) in the quarter ended December 2013. The average AUM for the industry rose by 8.3 per cent over the quarter ended September 2013 to hit an all-time high of 8,81,509 crore. For the calendar 2013, the industry’s AUM rose by 11 per cent from Rs 7,93,331 crore in December 2012.
While the AUM’s have grown on account of money flowing from high networth individual’s and other investors into liquid and other debt schemes and on the back of mark to market gains on account of gains in the stock market, industry insiders say that retail activity has also picked up.
“We are witnessing an increased activity from investors who were sitting on the sidelines and also from the independent financial advisers (IFAs). Investors have started to come back to the industry and we are expecting this to grow throughout this year,” said Sundeep Sikka, CEO, Reliance MF adding that the fact that the MF players across the industry have grown paints a good picture for the growth of the industry going forward.
The high growth during the quarter was driven right from the top as the top 5 AMC’s (by AUM) added an aggregate of Rs 39,186 crore or roughly 60 per cent of the industry’s gain. While ICICI Prudential AMC witnessed a jump of Rs 12,015 crore or 14 per cent in its AUM during the quarter, Reliance MF saw its AUM cross the Rs 1 lakh crore mark once again as it stood at Rs 104,412 crore witnessing a gain of Rs 9,184 crore or 9.6 per cent during the quarter.
Birla Sunlife and SBI MF saw their average AUM for the quarter grow by 10 per cent and 9.8 per cent respectively.
HDFC MF saw its AUM grow by Rs 5,950 crore or 5.7 per cent to Rs 109,392 crore thereby maintaining its leadership position. As high as 32 AMC’s out of the total of 46 witnessed a rise in the Aum during the quarter and only 13 of them witnessed a decline.
In the previous quarter ended September 2013, the industry had seen a dip of 4.5 per cent in its AUM as the stock markets, rupee and short term interest rates remained highly volatile.
The average AUM for the industry slipped to Rs 814,026 crore in September 2013 from Rs 852,662 crore in the quarter ended