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SBI Mutual Fund tops HDFC Mutual Fund as No 1 asset manager

India’s mutual funds leaderboard now has a new occupant at the highest rung: SBI Mutual Fund.

It has nudged ahead of HDFC Asset Management in January 2020, with total assets under management (AUM) of Rs 3.82 lakh crore. HDFC AMC is now the second biggest, with Rs 3.79 lakh crore of AUM. ICICI Prudential AMC is the third largest, with AUM of Rs 3.68 lakh crore.

In equity assets, SBI MF is the largest player, with Rs 1.94 lakh crore of assets compared with HDFC Asset Management Company’s Rs 1.54 lakh crore. In debt assets, SBI MF is second to HDFC MF, which has Rs 1.99 lakh crore of AUM, compared with SBI's Rs 1.63 lakh crore.

“A combination of process-driven fund management, consistency in performance, flows from EPFO, and a strong distribution network has helped the fund house reach the top position,” said Kaustubh Belapurkar, director (fund research), Morningstar India.

SBI Mutual Fund has been a major beneficiary of a steady stream of equity inflows through the government run Employees Provident Fund Organisation (EPFO). The EPFO routes its equity allocation through index ETFs, which are managed by SBI and UTI MF.

Lowering of deposit rates by government banks such as SBI has also led to more retail funds moving into mutual fund schemes. Retail investors prefer strong brand names such as the SBI. After the DHFL crisis, many institutional investors have moved their debt allocation to larger bank-led fund houses such as SBI MF, HDFC MF, ICICI Prudential MF, Kotak MF and IDFC MF.

AUM of the Indian mutual funds industry is at an all-time high, at Rs 27.86 lakh crore in January. Over the past decade, AUM of the Indian mutual funds Industry has seen a three-and-a-half fold growth, from Rs 7.59 lakh crore in January 2010.

Asset under management (AUM)
SBI Mutual Fund: Rs 3.82 lakh crore
HDFC Mutual Fund: Rs 3.79 lakh crore
ICICI Prudential Mutual Fund: Rs 3.68 lakh crore

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