SEBI emphasised on the need of having more competition to ensure uniform growth among industry players
The latest AMFI quarterly data reveals that top 20 fund houses account for 95 percent of industry AUM. These mutual fund houses manage over Rs 23.06 lakh crore as on July-Sep quarter of the total quarterly AUM of Rs 24.28 lakh crore of 41-mutual funds.
Among top 10 asset management companies, ICICI Prudential Mutual Fund with a marginal rise in assets continued to remain the top fund house in the industry with AUM of Rs 3.10 lakh crore.
While average AUM of HDFC Mutual Fund fell 0.16 percent, however, it managed to maintain the second position in the top 10 league and Aditya Birla Sun Life Mutual Fund continued Â at the third slot.
SBI Mutual Fund with an impressive 9 percent rise in its average AUM took the fourth position relegating Reliance Mutual Fund to fifth spot.
UTI Mutual Fund and Axis Mutual Fund followed SBI Mutual Fund by collecting Rs 12,763 crore and Rs 8,430 crore respectively in July-September 2018.
The total AUM of top 10 asset management companies rose 3.68 percent to Rs 19.63 lakh crore of the total 24 lakh crore.
Essel Mutual Fund, PPFAS Mutual Fund and IIFL recorded healthy growth last quarter. Essel Mutual Fund led the pack by registering growth of 26% followed by PPFAS Mutual Fund (25 percent) and IIFL Mutual Fund (20 percent).
Currently, big fund houses as per assets under management with stable management and good track record own a large share of the incremental business that entered the industry over the last five years.
Securities and Exchange Board of India (SEBI)Â Chairman Ajay Tyagi had recently expressed concerns over the growing concentration of assets under management (AUM) among the topÂ sevenÂ players.
"The top seven AMCs [asset management companies] currently manage 70 percent of industry AUM. The top seven AMCs accounted for 60 percent of entire industryâ€™s revenue. The profit before tax as a percentage of revenue of large mutual funds has also stood at a very healthy rate of 40-50 percent," Tyagi had said.
He emphasised on the need of having more competition to ensure uniform growth among industry players.
There is a need for more competition in the mutual fund industry so that the costs incurred by the investors reduce, Tyagi, had said at a recent mutual fund event.
In the last 12 years, a growth of 6.5 percent has been seen in the mutual fund industry from Rs 3.53 lakh crore of AUM in March 2007 to Rs 23.05 lakh crore in March 2018.
The number of players in the mutual fund industry have grown from 34 in March 2007 to 46 in March 2013. However, it reduced to 42 by March end of 2016.