Mutual funds in India

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The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched Unit Trust of India (UTI).[1] UTI enjoyed a monopoly in the Indian mutual fund market until 1987, when a host of other government-controlled Indian financial companies established their own funds, including State Bank of India, Canara Bank and by Punjab National Bank.

Mutual funds are an under-tapped market in India[edit]

Despite being available in the market[2] less than 10% of Indian households have invested in mutual funds.[citation needed] A recent report on Mutual Fund Investments in India published by research and analytics firm, Boston Analytics, suggests investors are holding back from putting their money into mutual funds due to their perceived high risk and a lack of information on how mutual funds work.[3] There are 46 Mutual Funds as of June 2013.[4]

The primary reason for not investing appears to be correlated with city size. Among respondents with a high savings rate, close to 40% of those who live in metros and Tier I cities considered such investments to be very risky, whereas 33% of those in Tier II cities said they did not know how or where to invest in such assets.[citation needed]

Distribution[edit]

Servicing[edit]

Larger Indian Mutual Fund Industry has benefited from outsourcing the activity of servicing their investors to two of the leading Registrar and Transfer Agents (RTAs) in India namely CAMS and Karvy. While CAMS commands close to 65% of the Assets servicing, rest is with Karvy. Franklin Templeton Mutual Fund services its investors through its own in-house RTA set up.

Both the RTAs have vibrant network of their local offices which enable the Mutual Fund Investors to transact locally. These touch points (or) Customer Service Centers (CSCs), provide a wide range of servicing including, financial transaction acceptance & processing, non financial changes, KYC fulfillment formalities, nomination registration, transmission of units apart from providing statement of accounts etc.

Average assets under management[edit]

Assets under management (AUM) is a financial term denoting the market value of all the funds being managed by a financial institution (a mutual fund, hedge fund, private equity firm, venture capital firm, or brokerage house) on behalf of its clients, investors, partners, depositors, etc.
The average assets under management of all mutual funds in India for the quarter Dec 2015 to Mar 2016 (in ₹ Lakh) is given below:[5]

Mutual Fund Name Total Schemes QAAUM AUM (₹ Lakh.) Prev QAAUM (₹ Lakh.) Inc/Dec (₹ Lakh.) Percentage
Axis Asset Management Company 263 3776454.37 3456348.88 320105 9%
Baroda Pioneer Asset Management Company 111 965630.33 925542.12 40132 4%
Birla Sun Life Asset Management Company 806 13678510.7 13684493.34 5312 0%
BNP Paribas Asset Management Company 114 509706.79 500795.21 9209 2%
BOI AXA Asset Management Company 76 238501.41 242767.91 2887 1%
Canara Robeco Asset Management Company 142 804326.86 751779.86 52627 7%
Pramerica Investment Management 8 27698 17194 10504 61%
DHFL Pramerica Asset Management Company 491 2598683.24 216345 -80979 -37%
DSP Asset Management Company 398 4015131.25 3918267.17 96865 2%
Edelweiss Asset Management Company 70 167774.29 163236.28 4538 3%
Escorts Asset Management Company 60 28559.18 29222.27 -663 -2%
Franklin Templeton Asset Management Company 200 6784076.49 7172216.54 -384257 -5%
Goldman Sachs Asset Management Company 18 610139.99 685179.35 -75039 -11%
HDFC Asset Management Company 1173 17608456.44 17866622.24 -256390 -1%
HSBC Global Asset Management Company 155 790382.19 837762.82 -47151 -6%
ICICI Prudential Asset Management Company 1529 17596397.6 17223699 390751 2%
IDBI Asset Management Company 92 689266.37 756428.17 -67162 -9%
IDFC Asset Management Company 453 5228379.46 5486421.83 -249600 -5%
IIFCL Asset Management Asset 1 35797.56 34293.89 1504 4%
IIFL Asset Management Company 18 48543.76 42203.84 6340 15%
IL & FS Infra Asset Management Company 12 92296.34 90029.5 2267 3%
Indiabulls Asset Management Company 56 528955.04 491675.45 37279 8%
JM Financial Asset Management 179 1616090.42 1586776.74 29313 2%
Kotak Mahindra Asset Management Company 431 5873108.27 5513383.02 362464 7%
L&T Asset Management Company 246 2594480.1 2505850.82 89990 4%
LIC Nomura Mutual Fund Asset Management Company 176 1315562.4 1238408.04 92942 8%
Mirae Asset Management Company 55 313272.14 280239.04 33101 12%
Motilal Oswal Asset Management Company 31 468921.13 455222.64 14103 3%
Peerless Asset Management Company 57 98524.1 102441.7 -3917 -4%
PPFAS Asset Management Company 1 61357.1 62931.88 -1575 -3%
Principal Asset Management Company 123 528106.02 587875.66 -59770 -10%
Quantum Asset Management Company 15 66093.04 65531.63 561 1%
Reliance Asset Management Company 1015 15936949.34 15787817.36 152561 1%
Religare Global Asset Management Company 267 1959617.91 1988459.31 -28622 -1%
Sahara Asset Management Company 68 9929.16 11002.32 -758 -7%
SBI Asset Management Company 652 10732737.36 10058453.69 672760 7%
Shriram Asset Management Company 4 3716.98 3711.53 5 0%
Sundaram Asset Management Company 479 2366370.94 2187696.57 185302 8%
Tata Asset Management Company 324 3186223.17 3155590.09 26752 1%
Taurus Asset Management Company 65 394858.04 350334.19 44524 13%
Union KBC Asset Management Company 60 290228.21 273213.25 17015 6%
UTI Asset Management Company 1220 10630921.82 10612903.52 16124 0%
Gross 11856 135912187.2 132170477.1

Mutual Fund Acquisitions[edit]

Seller Acquired By Year
Pioneer ITI MF 000Franklin Templeton 02002
Zurich India AMC 000HDFC MF 02003
Alliance Capital MF 000Birla Sunlife 02005
Standard Chartered 000IDFC 02008
AIG Global Investment Group MF 000PineBridge MF 02011
Benchmark Mutual Fund 000Goldman Sachs 02011
Fidelity 000L&T Finance 02012
Morgan Stanley's MF 000HDFC MF 02013
PineBridge MF 000Kotak MF 02014
ING Mutual Fund 000Birla Sunlife 02014
Daiwa AMC 000SBI MF 02013
Goldman Sachs 000Reliance MF 02015
Deutsche 000Pramerica 02015
JP Morgan 000Edelweiss 02016

References[edit]

  1. ^ "MF History http://www.amfiindia.com/research-information/mf-history". Association of Mutual Funds of India. External link in |title= (help)
  2. ^ "Association of Mutual Funds, India". Retrieved 4 September 2013.
  3. ^ "Boston Analytics - India Watch". Archived from the original on 29 July 2012. Retrieved 4 September 2013.
  4. ^ "Average AUM - Fund-wise". June 2013. Retrieved 4 September 2013.
  5. ^ "Average AUM". Association of Mutual Funds in India. Retrieved 6 April 2016.