Mutual funds Sahi Hai!
This slogan you must have heard in ads in between IPL matches or seen on billboards of bus terminals.
Before you get into the details, this blog post is about the overview of the top amc in India by AUM as of today.
What is AMC?
AMC stands for “asset management company”. They manage different asset classes like stocks, bonds, and gold.
Their primary goal is to generate meaningful returns for their client money with less risk. To perform this, they charge a small percentage of the fee from your investment.
Your invested money is managed by the expertise of a fund manager.
AMC offers different kinds of schemes for their clients to invest with various kinds of risk profiles associated.
Overview of this Industry:
As Indians, our love for hard assets like Land, house, gold is more.
But in recent times, due to the disrupt in India’s economic growth and awareness of stock market, investors are more willing to participate in owning stocks. Now the new generation investors preferred class of asset is stocks.
This trend helped the Asset management industry in India to grow exponentially.
Lets look at from the grassroot stage of this industry. We can split into 5 different phases. Little bit of history! Bear with me.
First Phase:
The Mutual Fund industry in India started in 1963 with formation of UTI (unit trust of India)under the Regulatory and administrative control of the Reserve Bank of India (RBI).
In 1978, UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI.
Unit Scheme 1964 (US ’64) was the first scheme launched by UTI.
At the end of 1988, UTI had ₹ 6,700 crores of Assets Under Management (AUM).
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Second Phase:
The year 1987 marked the entry of public sector mutual funds set up by Public Sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).
SBI Mutual Fund was the first ‘non-UTI’ mutual fund established in June 1987, followed by Canara bank Mutual Fund (Dec. 1987), Punjab National Bank Mutual Fund (Aug. 1989), Indian Bank Mutual Fund (Nov 1989), Bank of India (Jun 1990), Bank of Baroda Mutual Fund (Oct. 1992).
LIC established its mutual fund in June 1989, while GIC had set up its mutual fund in December 1990.
At the end of 1993, the MF industry had assets under management of ₹47,004 crores.
Third Phase:
The Indian stock market gained its importance with the establishment of SEBI in April 1992 to protect the interests of the investors in stock market.
In 1993, the SEBI Mutual Fund Regulations came into being for all mutual funds, except UTI.
Franklin Templeton mutual fund was the first private sector MF registered in July 1993.
With the entry of private sector funds in 1993, a new era began in the Indian MF industry, giving the Indian investors a wider choice of MF products.
The initial SEBI MF Regulations were revised and replaced in 1996 with a comprehensive set of regulations, viz., SEBI (Mutual Fund) Regulations, 1996 which is currently applicable.
The number of MFs increased over the years, with many foreign sponsors setting up mutual funds in India.
Also the MF industry witnessed several mergers and acquisitions during this phase.
At the end of January 2003, there were 33 MFs with total AUM of ₹1,21,805 crores, out of which UTI alone had AUM of ₹44,541 crores.
Fourth Phase:
Post the global market crash in the year 2009, stock markets across the world had tanked and India wasn’t a exception.
Most investors who had entered the capital market during the peak, had lost money and their faith in MF products was shaken greatly.
The abolition of Entry Load by SEBI, coupled with the after-effects of the global financial crisis, deepened the adverse impact on the Indian MF Industry, which struggled to recover and remodel itself for over two years, in an attempt to maintain its economic viability which is evident from the sluggish growth in MF Industry AUM between 2010 to 2013.
Fifth Phase:
Since May 2014, the Industry has witnessed steady inflows and increase in the AUM as well as the number of investor folios (accounts).
- The Industry’s AUM crossed the milestone of ₹10 Trillion (₹10 Lakh Crore) for the first time as on 31st May 2014 and in a short span of about three years the AUM size had increased more than two folds and crossed ₹ 20 trillion (₹20 Lakh Crore) for the first time in August 2017. The AUM size crossed ₹ 30 trillion (₹30 Lakh Crore) for the first time in November 2020.
- The overall size of the Indian MF Industry has grown from ₹ 8.14 trillion as on 28th February 2013 to ₹ 39.46 trillion as on 28th February 2023, around 5 fold increase in a span of 10 years.
- The MF Industry’s AUM has grown from ₹ 22.20 trillion as on February 28, 2018 to ₹39.46 trillion as on February 28, 2023, around 2 fold increase in a span of 5 years.
- The no. of investor folios has gone up from 6.99 crore folios as on 28-Feb-2018 to 14.42 crore as on 28-Feb-2023, more than 2 fold increase in a span of 5 years.
- On an average 12.39 lakh new folios are added every month in the last 5 years since February 2018.
As on Feb 2023, the asset managed by the Indian Mutual fund industry has crossed more than Rs 40.69 Trillion with increasing participation of individual investors.
Top AMC in India by AUM
SBI Mutual Fund
This AMC is a formed as mutual fund in 1987 as Joint venture between state bank of India (SBI) and AMUNDI ,a France based asset management firm. AMUNDI is one of the largest asset management firm in the world.
This fund house uses SBI vast distribution network and AMUNDI’s fund management competency to attract new investors.
The fund house provides wide variety of domestic mutual fund schemes in the equity, debt , liquid and hybrid space.
Since its launch , it made as a top amc in India and is also raised as a largest AMC in India.
ICICI Prudential Mutual Fund
The Joint venture between ICICI Bank and Prudential PLC , a British Insurance and investment management firm formed ICICI prudential Mutual fund in 1988.
Its provides a wide variety of mutual fund schemes in the equity, debt , hybrid funds along with exchange traded funds (ETF) and passive investing solutions.
This mutual fund house uses its parent and sponsor’s financial experience and competence to become one of the top amc in India.
HDFC Mutual Fund
HDFC Mutual fund was formed in 1999 as a joint venture between Housing Development Financial Corporation (HDFC) and Standard life insurance (Now acquired by Phoneix group) UK based investment management firm.
Along with Fund of fund schemes (FOF) and exchange traded funds (ETF), it provides a full range of mutual fund schemes in equity, debt, and hybrid categories.
With a large distribution network , stable administration and affordable investment products , this fund emerged as one of the top amc in India and the most profitable fund house.
Nippon India Mutual fund
Its one of the largest and fast growing asset management firm in India by AUM.
In 1995, Nippon India mutual fund was formed and allowed investors to invest ETF, retirement funds, equity, debt and hybrid category.
Nippon India is also the market leader in ETF schemes. The fund house strive to provide value to investors by innovative product offers and great customer service.
As a result , Nippon India is considered as the best amc in India.
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Kotak Mahindra Mutual Fund
Kotak Mahindra mutual fund was founded in 1998. It started small but has become one of the top amc in India by aum.
Along with fund of fund schemes and exchange traded funds, it provides a broad selection of mutual fund schemes in the equity, debt, and hybrid categories.
The fund firm works continuously to outperform the benchmark across all its products. Recently, Kotak Mahindra mutual fund emerged as fifth largest AMC in India by AUM.
Aditya Birla Sun Life Mutual Fund
This fund was founded in 1994 as a joint venture between the Aditya Birla Group and Sun life , Canada based asset management firm.
This fund house provides a wide selection of mutual fund schemes in the equity, debt, balanced category along with Fund of Funds and offshore funds.
Aditya Birla Mutual Fund house attracted many investors due to its innovative product offerings, brand identity and reliable investment steps.
Axis Mutual Fund
Axis Mutual fund attracted many investors due to its top-notch financial and investing solutions along with a strong focus on risk management and planning.
A wide range of mutual funds schemes are at investors disposal in equity, debt, balanced category along with Fund of Fund schemes, special circumstance funds.
Customer focus, digital investment procedure and its great selection of fund product helped the fund house to reach faster among the investors.
UTI Mutual Fund
UTI Mutual Fund was founded to give investors chance to build wealth by participating in the capital market.
In addition to domestic mutual funds, portfolio management services, international business, retirement solutions, venture funds, and alternative investment funds are among the several investment options it provides.
The fund house strives to provide best-in-class services focusing on country growth while continuing to be the most popular mutual fund.
IDFC Mutual Fund
IDFC Mutual fund house was established under the Government of India (GOI) sponsorship, the Government of Singapore, AIG, the International Finance Corporation, JP Morgan, Citigroup, Morgan Stanley, and Goldman Sachs, among other parties, holding the majority of its shares.
It is headquarters in Mumbai, this fund house has developed into a strong network that, from its establishment, has consistently provided value to its clients.
The fund house, which has a robust research division, provides a wide selection of mutual fund schemes in the equity, debt, and hybrid categories and funds for wealth development and tax reduction.
DSP Mutual Fund
As a joint venture between Merrill Lynch Investment Managers and DSP Merrill Lynch Ltd., DSP Mutual Fund was founded in 1996.
The fund company has developed since it was launched into one of India’s top AMCs.
Along with international funds of funds, exchange-traded funds, and close-ended funds, it provides a wide selection of mutual fund schemes in the equity, debt, and hybrid categories.
Mutual Fund house with its AUM: Top amc in India
How many amc are there in India?
New AMC are emerging these days. Instead of how many amc are there in India by numbers, the AMC names are listed below.
The mutual fund are classified in three categories: Bank sponsored, Institutions, and Private Sector.
Bank Sponsored:
- Baroda BNP Paribas Asset Management
- Canara Robeco Asset management company
- SBI Fund Management
- Union asset Management
- IDBI asset Management
- Bank of India Investment Management
- UTI Asset Management
Institutions:
- IIFCL Asset Management
- LIC Mutual Fund asset Management
Private Sector
India based:
- Bajaj Finserv asset Management
- DSP Asset Management
- Edelweiss asset Management
- IDFC AMC Ltd
- IIFL AMC Ltd
- IL&FS Infra Asset Management
- Indiabulls AMC
- ITI Asset Management
- JM Financial asset Management
- Kotak Mahindra asset Management
- Motilal Oswal asset Management
- Navi AMC
- NJ asset Management
- PPFAS asset Management
- Quant Money Managers
- Quantum asset Management
- Samco Asset Management
- Shriram asset Management
- Sundaram Asset Management
- Tata AMC
- Taurus AMC
- Trust AMC
- WhiteOak Capital Asset Management
Foreign based:
- Franklin asset Management firm
- HSBC asset Management firm
- Invesco asset Management Pvt Ltd
- Mirae Asset Management Pvt Ltd
- Nippon Life asset Management Pvt Ltd
- PGIM India asset Management Pvt Ltd
Joint Ventures:
- Aditya Birla Sun Life AMC
- HDFC asset Management Company
- Axis asset Management Company
- ICICI Prudential asset Management Company
- Mahindra Manulife asset Management Pvt Ltd
Listed top amc stocks in India
- HDFC asset Management company
- UTI Asset Management
- Nippon India asset management
- Aditya Birla sun life AMC
- IIFL Asset Management.
These are the publicly listed top amc stocks in India in BSE and NSE.
Final Thoughts
In recent times, you can see many new players are trying to get the AMC license and entering in this growing industry.
Since investing in capital markets in India is at the beginning stage and its high profit margin many companies are attracted to enter in this space.
The above mentioned fund house are the top amc in India by aum.
Thank You for reading!
Disclaimer: This article is solely for education purpose, do not consider this as an investment advice or tip.
