FY 2014-15 India's Largest Mutual Fund House HDFC MF grew 42.88% to Rs 1,61,969 crore

Bank-sponsored mutual funds (MFs) performed better in 2014-15 as compared to others in terms of growth in their asset under management (AUM).

Among the top 10 mutual funds, 5 are bank-sponsored mutual funds: HDFC Mutual Fund, ICICI Mutual Fund, SBI Mutual Fund, IDFC Mutual Fund and Kotak Mutual Fund.

The total assets under management of these 5 mutual funds accounted for 40.35% or Rs. 4,79,686 crore of the industry assets of Rs. 11,88,535 crore.

In 2014-15, the mutual fund industry’s assets grew 31.31% as per data released by the industry body Association of Mutual Funds in India (AMFI).

The bank-sponsored mutual funds’s asset grew at a faster pace than other mutual funds in 2014-15. Some of the late entrants among the bank-sponsored mutual funds are growing even at fast pace.
Axis Mutual Fund, the 12 largest in terms of asset under management grew 64% in 2014-15 rising from Rs 16,284 crore to Rs 26,717 crore.

BOI AXA Mutual Fund grew 76%though from a much smaller asset base of Rs. 1.991.13 crore to Rs. 3.518.19 crore.

Assets of the largest fund house, HDFC Mutual Fund, grew 42.88% from Rs. 1,13,354 crore to Rs 1,61,969 crore and ICICI Prudential Mutual Fund’s assets grew 38.99% from Rs. 1,06,940 crore to Rs 1,48,646 crore.

IDFC Mutual Fund and Kotak Mutual Fund too clocked 25.14% and 24.32% AUM growth during 2014-15. But public sector bank-sponsored mutual funds were under performers to average industry AUM growth with SBI Mutual fund growing by 13.92%.

Nevertheless, some fund houses without a bank as promoter fared well. Franklin Templeton Mutual Fund’s assets grew at 54% from Rs. 46,406 crore to Rs. 71,479 crore. Reliance Mutual Fund and Birla Sun Life Mutual Fund among the top 10 mutual funds clocked assets under management growth at 31.28% and 34.66% respectively.

But smaller non-bank mutual funds have clocked lower than industry average growth & some even have shown negative growth in 2014-15. Banks enjoy huge distribution network advantage over other mutual fund players, said managing director & chief executive officer of a mutual fund house.

With the industry debating the issue of commission structure for the mutual fund distributors and their dwindling numbers, bank-sponsored mutual funds are still able to push the mutual fund products with their huge branch network.

According to the Financial Intermediaries Association of India, the number of mutual fund distributors in the industry has dropped drastically from about 1.2 lakh distributors to just 6,000.

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