Mixed signals

Mutual fund (MF) assets swell to record highs in the December quarter, but assets under management (AUM) growth stands at the lowest in nine quarters

The domestic MF sector's AUM climbed to record levels in the December quarter. Assets rose nearly two per cent to Rs 13.4 lakh crore. The growth, however, was the slowest since the September 2013 quarter. During calendar year 2015, the domestic MF sector saw AUM increase by 20 per cent, or Rs 2.3 lakh crore. The robust addition comes on the back of strong inflows, especially in the equity segment at nearly Rs 90,000 crore. Despite sharp increase in assets, the sector continues to be dominated by top players. Top five fund houses control the lion's share of the overall assets. Put together, they capture more than half of the market share at 56 per cent or assets worth Rs 7.5 lakh crore. HDFC Mutual Fund remains the largest house with Rs 1.78 lakh crore worth of assets, while ICICI Prudential Mutual Fund is following closely at the second slot with assets worth Rs 1.72 lakh crore.