The tide turned in early 2014 when investors once again started flocking to equity schemes. Assets under management (AUM) of the industry in the equity segment have increased nearly fourfold from the 2013 lows. A lot of AMCs have managed to successfully cash in on this. Currently, HDFC Mutual Fund
and SBI Mutual Fund
are the top two AMCs in terms of equity assets.
Each of them manage over Rs 1-lakh crore worth of equity assets. ICICI Prudential MF, which managed Rs 97,900 crore in equity assets, is ranked third. The equity segment has an average 40 per cent share in total AUMs for the top 10 AMCs. Managing equity assets is considered to be more profitable for a fund house.
In the top 10, only SBI MF and Franklin Templeton MF have at least half of their assets in the equity segment. Sector executives continue to be bullish on the segment. According to them, equity schemes as an investment vehicle will continue to gain acceptance as they offer better returns relative to other asset classes such as gold, real estate and bank deposits.