SBI MF adds 3 million SIP accounts at 40% YoY growth rate in FY22

Asset manager clocks strong performance this fiscal, ahead of its IPO

SBI Mutual Fund (MF), India’s largest fund house, has added three million new systematic investment plan (SIP) accounts so far this financial year, recording nearly 40 per cent year-on-year growth. The fund house said it has received an average Rs 1,800 crore every month through SIPs in FY22 with an average ticket size of Rs 2,500 per client.

SBI MF manages assets over Rs six trillion, the first fund house to hit the milestone. It has a market share of 16.43 per cent, which is highest for any fund house during the past 10 years. Its market share is even higher in beyond-30 centres (B30).

This fiscal, SBI MF’s new fund offer (NFO) for SBI Balanced Advantage Fund, garnered a record Rs 14,691 crore in August. Earlier this month, the NFO of SBI Multicap Fund mobilised Rs 8,095 crore, the highest mobilisation by a scheme in the multicap category.

“The robust growth in the new SIPs is driven by the availability of its offerings through a strong distribution network of independent financial advisors (IFAs), national distributors and branches of parent State Bank of India (SBI). SBI Mutual Fund also has further increased its footprint in the country with the opening of new branches in several tier-2 locations,” SBI said in a statement.

The strong performance comes ahead of the asset manager’s proposed initial public offering (IPO). The asset manager is planning to file its draft red herring prospectus with market regulator Sebi soon. SBI MF’ IPO size is pegged at Rs 7,000-7,500 crore, valuing the country’s largest MF at Rs 70,000-75,000 crore.

SBI MF is a 63:37 joint venture between State Bank of India (SBI), India’s largest lender in terms of balance sheet size and Europe’s leading asset manager Amundi. SBI plans to offload 6 per cent in the IPO, while the french asset manager will sell 4 per cent.

SBI MF will be the fifth-pure-play mutual fund house to list on domestic bourses. HDFC MF, Aditya Birla Sun Life MF, UTI MF and Nippon Life India MF are five listed firms in the space.