Uphill task for MFs to top FY22 figures as asset growth moderates in H1FY23

Average AUM rises 2%, against a 20% increase in full-year FY22

The pace of growth in assets under management (AUM) of mutual funds moderated during the first half of the ongoing financial year (H1FY23). Data released by the Association of Mutual Funds in India (Amfi) shows that the average AUM of the industry rose 2 per cent in the H1FY23 to Rs 39 trillion. During the previous financial year (FY22), industry AUM had grown 20 per cent over the FY21 figure. Given the tepid growth during the first half, moderation in equity inflows and heightened market volatility, it is a tall ask for the industry to top last year’s growth figures.

The moderation in growth during the first half comes on the back of outflows from debt funds, declining net inflows in equity schemes and little or no mark-to-market gains with the benchmark indices remaining flat between the April-Sep 2022 period.

Nifty50 slipped 3 per cent in the first half of FY23, while the Nifty midcap 100 rose 1.7 per cent.

In the first five months, investors redeemed a net of Rs 16,100 crore from debt schemes and invested over Rs 56,000 crore in active equity schemes. However, the investments in active equity schemes has been on a decline since June.

An analysis of the fund-wise AUM data shows that some fund houses were still able to record good growth. Among the top 10, SBI MF was the fastest growing fund house with its AUM rising 5.5 per cent, helping it to further consolidate its position at the top. There were a few changes in the top 10 ranking as Kotak Mahindra MF and Aditya Birla MF slipped one spot each and Nippon India MF rose two spots, once again breaking into the top-five.

Beyond the top 10, there were 13 fund houses which recorded a double-digit growth in their AUM. Quant MF, Navi MF and PGIM India MF were the three fastest growing fund houses as their AUM rose in excess of 30 per cent. There were two new entrants in Amfi's latest AUM data, WhiteOak MF (which acquired YES MF) and Samco MF.

The AUM of both the fund houses is around Rs 650 crore.

Ebb and flow: Among the top five AMCs, only SBI MF managed industry-beating growth

Top five AMCs	AUM* (Rs trillion)	Change** (%)
SBI MF	6.83	5.5
ICICI Prudential MF	4.76	1.7
HDFC MF	4.29	-0.7
Nippon India MF	2.85	0.6
Aditya Birla Sun Life MF	2.83	-4.5
Industry	39.00	2.0
Fastest growth	AUM* (Rs cr)	Change** (%)
Quant MF	11,155	71.5
Navi MF	1,736	67.1
PGIM India MF	19,333	31.5
JM Financial MF	3,030	30.7
PPFAS MF	28,411	22.9
Source: AMFI; Note: *Average for the Jul-Sep 2022 period; **Over Average AUM for Q4FY22