AMC AUM Analysis & Insights

Every month the Asset Management Industry AUM of the Mutual Fund Industry comes out.  This time we have started doing an in-depth analysis concerning the same since the Excel data fails to give insights into the same. This analysis helps to get an insight into the growth of the industry.   Here are some insights and analyses based on the AMC data provided:

1. Top Performers (AUM Growth):

• SBI Mutual Fund: It continued to lead with an AUM of ₹11.23 trillion in October 2024, a marginal decrease from September’s ₹11.26 trillion. Despite the slight dip, it maintains a dominant market share.
• ICICI Prudential Mutual Fund: Ranked second with a slight increase in AUM from ₹8.67 trillion in September to ₹8.71 trillion in October. This shows steady growth in their asset base.
• HDFC Mutual Fund: Displays a significant month-on-month growth of around ₹57 billion, reaching ₹7.83 trillion in October from ₹7.78 trillion in September, indicating positive fund inflows or asset appreciation.

2. Notable Growth (Month-on-Month Comparison):

• Quant Mutual Fund: Shows a notable increase from ₹98,118.48 crore to ₹100,426.60 crore, a growth of over ₹2,308 crore, indicating strong momentum.
• Bandhan Mutual Fund: Gained ₹6,909.73 crore, moving from ₹1,59,275.88 crore in September to ₹1,66,185.61 crore in October.
• Kotak Mahindra Mutual Fund: Increased by about ₹4,687 crore month-over-month, signaling steady fund inflows.

3. Stable Performers:

• Axis Mutual Fund: Maintained a fairly stable AUM with slight growth from ₹3,23,806.37 crore to ₹3,27,575.27 crore, suggesting consistent performance.
• DSP Mutual Fund: Also showed slight growth from ₹1,89,262.12 crore to ₹1,91,566.94 crore.

4. Slight Decline in AUM:

• Franklin Templeton Mutual Fund: Dropped slightly from ₹1,14,531.53 crore in September to ₹1,12,663.08 crore in October, suggesting outflows or lower asset returns.
• PGIM India Mutual Fund: Decreased marginally by about ₹365 crore, suggesting some outflows.

5. Market Concentration:

The top 3 AMCs (SBI, ICICI Prudential, and HDFC) collectively manage over ₹27.78 trillion in assets, demonstrating their strong hold on the market. SBI Mutual Fund alone holds approximately 20% of the total AUM among the listed AMCs, followed by ICICI Prudential and HDFC, both with substantial shares.

6. Mid-Sized AMCs (Bandhan, DSP, UTI, Axis):

Mid-sized AMCs like Bandhan, DSP, and UTI showed consistent growth, reflecting the potential for mid-tier funds to grow their market share. Their competitive positioning allows them to capitalize on niche market segments and investment themes.

7. ESG and Thematic Investments:

With increasing focus on ESG (Environmental, Social, Governance) investments, funds like Quant Mutual Fund and WhiteOak Capital Mutual Fund showing growth may be tapping into investor demand for sustainable and thematic strategies. This could provide opportunities for advisory on ESG integration.

8. Newer or Smaller Funds:

• 360 ONE Mutual Fund and JM Financial Mutual Fund show stable but relatively lower AUM figures, suggesting potential for growth with strategic positioning.
• Funds like Groww Mutual Fund and Zerodha Mutual Fund are relatively smaller in terms of AUM but may benefit from retail investors' growing interest in direct investment platforms.

Potential Advisory Opportunities from the above Insight:

• Investor Sentiment Monitoring: With fluctuations in AUM across different AMCs, it’s important to monitor investor sentiment, which could be driven by macroeconomic factors, regulatory changes, or fund performance.
• ESG and Thematic Focus: Advising funds to increase ESG-related offerings or focusing on thematic investments might be a growth area, given the global shift towards sustainability.
• Mid-Sized AMC Growth: Advising mid-sized AMCs on expanding their product offerings, branding, and distribution could allow them to capture a larger market share.
• Fund Flow Analysis: A deeper dive into whether the changes in AUM are driven by inflows/outflows versus market performance would help refine investment strategies.