Reliance Capital Asset Management Company, which runs Anil Ambani-led Reliance group's mutual fund business, has posted a net profit of Rs 276 crore for the fiscal year 2011-12, retaining its position as the country's most profitable fund house for the second straight year.
The company's profit after tax grew by over five per cent from Rs 261 crore in the previous fiscal 2011-12. Its profit after tax also grew by five per cent to Rs 308 crore in the fiscal ended March 31, 2012.
Reliance Capital AMC (Asset Management Company) had overtaken HDFC AMC as the country's most profitable fund house during the previous fiscal 2010-11 and has managed to retain its leadership position.
In the latest fiscal 2011-12, Reliance AMC was followed by HDFC AMC as the second most profitable fund house and the latter's profit after tax grew to Rs 269 crore from Rs 242 crore.
During the fiscal 2009-10, HDFC AMC was the most profitable with a profit after tax of Rs 208 crore, followed by Reliance AMC (Rs 195 crore), UTI AMC (Rs 170 crore) and ICICI Prudential (Rs 128 crore).
However, HDFC AMC slipped to second slot in 2010-11, while UTI remained at the thirst position with Rs 138 crore, followed by Franklin Templeton (Rs 97 crore), Birla Sunlife (Rs 85 crore) and ICICI Pru (Rs 72 crore), among others.
The latest fiscal (2011-12) figures are as yet not available for UTI and Franklin Templeton mutual funds, while Birla Sunlife and ICICI Pru have posted profit after tax of Rs 59 crore and Rs 88 crore, respectively.
Reliance Capital Asset Management managed Rs 1,40,853 crore (USD 27.5 billion) as on March 31, 2012, across mutual funds, pension funds, managed accounts and hedge funds.
Reliance Mutual Fund figures among the top two mutual funds in India, in terms of AUM, with market share of nearly 12 per cent and its average AUM stood at Rs 78,112 crore for the period ended March 31, 2012.
Nippon Life, largest private life insurer in Asia, recently signed final agreements to acquire a 26 per cent stake in RCAM -- making it the largest FDI in Indian mutual fund space and the largest investment in any Indian AMC.
The transaction, under which Nippon Life is investing Rs 1,450 crore for 26 per cent stake, pegs RCAM's valuation at approximately Rs 5,600 crore (USD 1.1 billion).