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 the Unit Trust of India (UTI). [1] Mutual funds are broadly categorised into three segments: equity funds, hybrid funds, and debt funds.

Contents

Mutual fund statistics

Mutual Fund Units Redeemed Data [3] [4]
Holding PeriodUnits redeemed in FY22Units redeemed in FY23
0 - 1 years56.83%50.11%
1 – 2 years15.14%23.04%
2 – 3 years5.03%9.81%
3 – 5 years20.41%13.96%
More than 5 years2.59%3.09%

Mutual fund category breakup

2021 liquidity crisis and regulatory actions

In April 2020, Franklin Templeton India unexpectedly wound up six credit funds with assets of close to $4 billion, citing a lack of liquidity amid the coronavirus pandemic. These funds had large exposure to higher-yielding, lower-rated credit securities. The Securities and Exchange Board of India (SEBI) conducted a probe into this sudden closure and found “serious lapses and violations”. As a result, in June 2021, SEBI barred Franklin Templeton Mutual Fund from launching any new debt schemes for two years. The regulator also ordered the fund house to refund investment and advisory fees, along with interest, of more than 5 billion rupees, and fined the global giant another 50 million rupees. [18] [19] [20] [21]

Franklin Templeton said it strongly disagreed with the SEBI’s order and planned to appeal against it. The decision to wind up the schemes “was taken with the sole objective of preserving value for unitholders”, a spokesperson said. However, the closure of these funds sparked panic withdrawals from other Franklin Templeton schemes as well as credit funds of other asset managers, leading to a storm on social media and court cases by distraught investors. [21] [18] [20]

Market segment

Despite being available in the market, [22] 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. [23] There are 46 Mutual Funds as of June 2013. [24] In 2019, Asset under management (AUM) of the mutual fund industry rose by 13% to 24 trillion in 2018 by November [25] The total assets under management (AUM) has surged by around 23.43% in 2023. The Assets base in January 2023 was Rs.40.70lakh crores, which rose to Rs.50.24 lakh crore in Nov, 23. [26]

Average assets under management

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: [27] [28] or [29]

Mutual Fund NameTotal SchemesQAAUM AUM (₹ Lakh.)Prev QAAUM (₹ Lakh.)Inc/Dec (₹ Lakh.)Percentage
Axis Asset Management Company 2633776454.373456348.883201059%
Baroda Pioneer Asset Management Company 111965630.33925542.12401324%
Birla Sun Life Asset Management Company 80613678510.713684493.3453120%
BNP Paribas Asset Management Company 114509706.79500795.2192092%
BOI AXA Asset Management Company 76238501.41242767.9128871%
Canara Robeco Asset Management Company 142804326.86751779.86526277%
Pramerica Investment Management 827698171941050461%
DHFL Pramerica Asset Management Company 4912598683.24216345-80979-37%
DSP Asset Management Company 3984015131.253918267.17968652%
Edelweiss Asset Management Company 70167774.29163236.2845383%
Escorts Asset Management Company 6028559.1829222.27-663-2%
Franklin Templeton Asset Management Company 2006784076.497172216.54-384257-5%
Goldman Sachs Asset Management Company 18610139.99685179.35-75039-11%
HDFC Asset Management Company 117317608456.4417866622.24-256390-1%
HSBC Global Asset Management Company 155790382.19837762.82-47151-6%
ICICI Prudential Asset Management Company 152917596397.6172236993907512%
IDBI Asset Management Company 92689266.37756428.17-67162-9%
IDFC Asset Management Company 4535228379.465486421.83-249600-5%
IIFCL Asset Management Asset 135797.5634293.8915044%
360 ONE Asset Management Limited 1848543.7642203.84634015%
IL & FS Infra Asset Management Company 1292296.3490029.522673%
Indiabulls Asset Management Company 56528955.04491675.45372798%
JM Financial Asset Management 1791616090.421586776.74293132%
Kotak Mahindra Asset Management Company 4315873108.275513383.023624647%
L&T Asset Management Company 2462594480.12505850.82899904%
LIC Nomura Mutual Fund Asset Management Company 1761315562.41238408.04929428%
Mirae Asset Management Company 55313272.14280239.043310112%
Nippon India Mutual Fund 101515936949.3415787817.361525611%
Motilal Oswal Asset Management Company 31468921.13455222.64141033%
Peerless Asset Management Company 5798524.1102441.7-3917-4%
PPFAS Asset Management Company 161357.162931.88-1575-3%
Principal Asset Management Company 123528106.02587875.66-59770-10%
Quantum Asset Management Company 1566093.0465531.635611%
Religare Global Asset Management Company 2671959617.911988459.31-28622-1%
Sahara Asset Management Company 689929.1611002.32-758-7%
SBI Asset Management Company 65210732737.3610058453.696727607%
Shriram Asset Management Company 43716.983711.5350%
Sundaram Asset Management Company 4792366370.942187696.571853028%
Tata Asset Management Company 3243186223.173155590.09267521%
Taurus Asset Management Company 65394858.04350334.194452413%
Union KBC Asset Management Company 60290228.21273213.25170156%
UTI Asset Management Company 122010630921.8210612903.52161240%
Gross11856135912187.2132170477.1

Mutual Fund Acquisitions

SellerAcquired ByYear
Pioneer ITI MFFranklin Templeton2002
Zurich India AMCHDFC MF2003
Alliance Capital MFBirla Sunlife2005
Standard Chartered IDFC2008
AIG Global Investment Group MF PineBridge MF2011
Benchmark Mutual FundGoldman Sachs2011
FidelityL&T Finance2012
Morgan Stanley's MFHDFC MF2013
PineBridge MFKotak MF2014
ING Mutual FundBirla Sunlife2014
Daiwa AMCSBI MF2013
Goldman SachsReliance MF2015
DeutschePramerica2015
JP MorganEdelweiss2016
PeerlessEssel2017
EscortsQuant2018
Religare InvescoInvesco AMC2018
Reliance MFNippon India [30] 2019
PrincipalSundaram2021
EsselNavi MF2021
L&T Asset Management CompanyHSBC Global Asset Management Company2022
IDFC Asset Management CompanyBandhan Financial Holdings Limited2023
India Bulls Asset Management CompanyGroww MF2023
IDBI Asset Management CompanyLIC Nomura Mutual Fund Asset Management Company2023

See also

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