Mutual fund industry sees best AUM growth in two years, shows data

Buoyed by strong gains in stock prices, the average assets under management (AUM) for the mutual fund (MF) industry increased 9 per cent during the three-month period ending September 2023.

This marked the highest quarterly growth for the industry since September 2021. It was also the second consecutive quarter where the AUM growth surpassed five per cent. The industry's average quarterly AUM increased 16 per cent in the first half of financial year 2023-24, reaching Rs 47 trillion.

The growth in AUM results from both market performance and fresh investments. Given the inflow trend and the performance of various indices, the bulk of the growth was attributed to smallcap and midcap funds. In the first six months of FY24, Nifty Midcap 100 and Nifty Smallcap 100 surged by 35 per cent and 42 per cent, respe­ctively.

In contrast, the largecap index, Nifty, appreciated by only 13 per cent. Among the top 20 fund houses, Parag Parikh Financial Advisory Services, Tata, Invesco, Canara Robeco, and Nippon India were the most substantial gainers in percentage terms. In absolute figures, SBI, ICICI Prudential, and HDFC witnessed the highest growth in average quarterly AUM over the past six months. SBI MF's AUM increased by over Rs 1 trillion in the last six months, according to Amfi.