Bank-sponsored MFs see higher folio additions; Axis, ICICI, SBI grab larger MF share
Bank-sponsored fund houses grabbed a larger pie of investors compared to other players, analysis of date from the Association of Mutual Funds in India showed.
As per the data, on the whole, investor accounts of top 15 fund houses, based on the asset under management (AUM), registered a 14 percent rise in FY19, and totally stood at 7.54 crore as against 6.62 crore a year ago.
In terms of individual fund houses for FY18-19, Axis Mutual Fund captured the numero uno position with the highest addition in investor accounts. Axis Bank-promoted fund house added 11.66 lakh folios last financial year, an increase of 42.82 percent from a year ago.
SBI Mutual Fund, sponsored by State Bank of India stood second with 11.21 lakh new folios, and ICICI Bank-promoted ICICI Prudential Mutual Fund added 10.52 lakh folios during the review period, taking the third spot.
With the addition of 10.38 lakh new folios in FY19, Aditya Birla Sun Life Mutual Fund had the fourth position, and with 9.85 lakh new folios, HDFC Mutual Fund stood at the fifth spot.
“Most bank-promoted fund houses have a robust presence in B-30 cities so they are able to attract more customers through their branches,” said a Mumbai-based distributor.
HDFC Mutual Fund, which is the largest fund house in terms of AUM, added 9.84 lakh folios.
Anil Dhirubhai Ambani Group (ADAG)-owned Reliance Mutual Fund added 8.95 lakh new folios, an increase of 10.95 percent from a year ago, while L&T Mutual Fund added 6.11 lakh new accounts in the last financial year.
Going by the percentage rise, among top 15 fund houses, Mirae Asset Mutual Fund recorded nearly 50 percent growth in investor accounts.
Overall, PPFAS Mutual Fund witnessed 321 percent growth in terms of new folio addition, and the overall folio addition in PPFAS was 61,256 investor accounts.
Only two fund houses saw a decline in the number of investor folios—DHFL Pramerica Mutual Fund and Sahara Mutual Fund, both on the back of individual issues lingering over the promoters of the companies.
The parent company of DHFL Mutual Fund, Dewan Housing Finance gained attention on September 21, 2018, when DSP Mutual Fund sold Rs 300 crore of DHFL papers at 11 percent in the secondary market, way higher than the traded rates, sparking speculation that DHFL could be facing liquidity issues. Post that, in the past six months, the company was downgraded by several rating agencies citing default.
In the case of Sahara Mutual Fund, in 2015, Sebi directed Sahara to exit from its mutual fund business after its sponsor and group Chairman Subrata Roy was declared ‘not fit and proper’. Sahara’s appeal against the Sebi order was rejected by the Supreme Court.Not sure which mutual funds to buy? Download moneycontrol transact app to get personalised investment recommendations.