Mutual Fund's AUM surges 14% to over Rs 24 trillion in Sept quarter

Mutual funds' asset base rose to over Rs 24 trillion in July-September quarter, a 14 per cent surge from the year-ago period, driven by participation from retail investors and a spirited investor awareness campaign by the industry.

The asset base of the industry, comprising 41 players, was Rs 23.4 trillion in the preceding three months, showing a growth of just 2.5 per cent on quarterly basis, according to the data by Association of Mutual Funds in India (Amfi).

The total asset base of all the fund houses put together was Rs 21 trillion in July-September 2017.

Industry experts attributed year-on-year growth to strong participation from retail investors, especially from smaller towns.

Besides, investor awareness campaigns by the industry and phenomenal growth in systematic investment plans also helped in the growth of assets under management.

The industry has been witnessing evolved behaviour from the retail mutual fund investors, as despite the continued market volatility, the equity inflows into markets continue to be robust, they added.

Further, systematic investment plans continue to be the fancy of retail investors, as it allow investors to invest in small amounts periodically, it also helps in rupee cost averaging.

Of the 41 fund houses, as many as 33 mutual funds (MFs) witnessed growth in their asset base during the period under review as compared to July-September quarter of 2017-18, while eight saw decline in their AUMs.

ICICI Prudential MF continued to lead the pack with an AUM of Rs 3102.57 billion (excluding fund of funds) at the end of September quarter, followed by HDFC MF (Rs 3063.6 billion) and Aditya Birla Sun Life MF (Rs 2542.07 billion).

With an asset base of Rs 2538.29 billion, SBI MF has bagged the fourth spot replacing Reliance MF, which has an AUM of Rs 2404.45 billion.