Nearly 40% of equity AUM concentrated in 20 schemes

The domestic mutual fund sector boasts of more than 500 schemes

The domestic mutual fund (MF) sector boasts of more than 500 schemes and over Rs 5 lakh crore of assets under management (AUM) but most of these are concentrated in a few schemes. 

According to data provided by Value Research Online, 20 equity schemes account for 40 per cent of the AUM. Most of these schemes belong to the top found houses and have at least five years of track record. 

These schemes also continue to attract a large portion of the incremental flows. Nine of the 20 schemes have assets more than Rs 10,000 crore. HDFC Mutual Fund's Equity Fund, Top 200 Fund, Mid-Cap Opportunities Fund and Tax Saver Fund are part of the top 20 list and collectively manage almost Rs 50,000 worth of assets.

ICICI Prudential's Value Discovery Fund, Focused Bluechip Fund and Dynamic fund manage Rs 32,800 crore. 

Industry players say disproportionately higher market share of a few schemes may not be a healthy sign as it raises concentration risks.