India's top 10 MFs capture more market share

Smaller fund houses lose big money

Preference for larger fund houses among investors' community is on the rise. So much so that smaller fund houses are losing big time money this year. 

 

At a time when industry as a whole could see a mere decline of one% in its average assets under management (AUM) so far this financial year, several small players lost anywhere between 15% to as high as 42% of their assets.

 

For instance, Taurus Mutual Fund and Peerless Mutual Fund witnessed an erosion of about 42% during April-September period. While, Principal PNB MF and ING MF saw about 23% of asset erosion.

 

However, the top ten players collectively managed to gain 1.3% in assets to Rs 6.36 lakh crore. With this, big fund houses captured about 2% more market share taking it up to 78.7% during this period.

 

According to C R Chandrasekar, co-founder and CEO of Wealth India Financial Services, "Majority of the money goes to top ten players."

 

As on 30 September, Industry had an average AUM of Rs 8.08 lakh crore.