The asset base of top 10 mutual fund houses in India has witnessed a 37% growth according to a recent NDTV news report. The report mentions that these AMCs (asset management companies) have also witnessed an average of 21% growth in year on year profits during the same period. The report cites AMFI (Association for Mutual Funds in India) data that the profit before tax (PBT) recorded by fund houses in India had reached the Rs. 4001 crores level. This indicates a 21% y-o-y growth as compared to the Rs. 3309 crores of PBT recorded previously.
The NDTV report also mentions a commensurate growth of AUM among fund houses operating in India. As per the AMFI data, the AUM for fund houses stood at Rs. 14.78 lakh crores on March-end 2017 which indicates a 37% increase on top of the Rs. 10.76 lakh crores level recorded in March 2016. Among established AMCs, DSP BlackRock Mutual Fund AMC recorded the highest rate of AUM growth at 64% to the Rs. 64,177 crores level, while also showing a noticeable decline in profitability. The AMC recorded a 2% decline in profits to reach the new level of Rs. 119.6 crores.
Some other noteworthy AMCs that stand out in the report include Kotak Mahindra Mutual Fund AMC, SBI Mutual Fund AMC, Reliance Mutual Fund AMC and Aditya Birla Sun Life Mutual Fund AMC. Kotak Mahindra MF witnessed a 58% increase in asset base and reached Rs. 92,216 crores, while PBT declined by 19% to Rs. 58.6 crores. In case of SBI MF AMC, the AUM increase was recorded at 47% to Rs. 1.57 lakh crores with PBT also increasing 31% to reach Rs. 330 crores. The expanded asset base of Reliance MF is now valued at Rs. 2.11 lakh crores subsequent to 33% growth over the previous year with the new PBT of Rs. 592.3 crores indicating 19% y-o-y growth. Aditya Birla Sun Life AMC also showed a similar trend with AUM increase of 43% to Rs. 1.95 lakh crores, however the AMC’s PBT witnessed slow growth at 5% to reach the Rs. 335 crores level.