MF industry’s asset base surges 21% on robust equity inflow

NEW DELHI: Strong participation from retail investors and robust inflow in equity schemes helped the mutual fund (MF) industry’s asset base soar by 21.1% to ₹13.4 lakh crore in 2015.

India’s 44 fund houses together had an average assets under management (AUM) of ₹11.06 lakh crore at the end of December 2014, compared to₹13.39 lakh crore registered a year-ago, as per latest data available with Association of Mutual Funds in India.

Fund houses are upbeat about the industry’s prospects for the New Year as well.

Given the sluggish trends in the real estate market and continued fall in gold prices, MF industry expects to attract a larger share of the Indian households’ savings from this year.

“On an overall basis, we see positive growth and higher retail participation in 2016,” Reliance Mutual Fund CEO Sundeep Sikka said.

The top five fund houses — HDFC MF, ICICI Prudential MF, Reliance MF, Birla Sunlife MF and UTI MF — retained their top five positions from last year.

HDFC MF continued to hold its numero uno position with an average AUM of ₹1.78 lakh crore a surge in asset base by 18.5% followed by ICICI Prudential MF which saw its asset base growing by 26% to ₹1.72 lakh crore.

Reliance MF’S AUM climbed 24.5% to ₹1.57 lakh crore, Birla Sunlife MF’S assets base went up 26.5% to ₹1.26 lakh crore and UTI MF rose 21.4% to ₹1.06 lakh crore

Market experts said the yearly rise in AUM is largely on account of huge inflow in equity and equi ty-oriented schemes. In addition retail participation increased sig nificantly during the year.