Mutual funds in India

The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched Unit Trust of India (UTI).[1] UTI enjoyed a monopoly in the Indian mutual fund market until 1987, when a host of other government-controlled Indian financial companies established their own funds, including State Bank of India, Canara Bank, and Punjab National Bank. This market was made open to private players in 1993, as a result of the historic constitutional amendments brought forward by the then Congress-led government under the existing regime of Liberalization, Privatization and Globalization (LPG). The first private sector fund to operate in India was Kothari Pioneer, which later merged with Franklin Templeton. In 1996, SEBI, the regulator of mutual funds in India, formulated the Mutual Fund Regulation which is a comprehensive regulatory framework.[2]

Mutual funds are an under tapped market in India

Deposit being available in the market[3] less than 10% of Indian households have invested in mutual funds. A recent report on Mutual Fund Investments in India published by research and analytics firm, Boston Analytics, suggests investors are holding back from putting their money into mutual funds due to their perceived high risk and a lack of information on how mutual funds work.[4] There are 46 Mutual Funds as of June 2013.[5]

The primary reason for not investing appears to be correlated with city size. Among respondents with a high savings rate, close to 40% of those who live in metros and Tier I cities considered such investments to be very risky, whereas 33% of those in Tier II cities said they did not know how or where to invest in such assets.


Mutual fund investments are sourced both from institutions (companies) and individuals. Since January 2013, institutional investors have moved to investing directly with the mutual funds since doing so saves on the expense ratio incurred. Individual investors are, however, served mostly by Investment advisor and banks. Since 2009, online platforms for investing in Mutual funds have also evolved.


Larger Indian Mutual Fund Industry has benefited from outsourcing the activity of servicing their investors to two of the leading Registrar and Transfer Agents (RTAs) in India namely CAMS and Karvy. While CAMS commands close to 65% of the Assets servicing, rest is with Karvy. Franklin Templeton Mutual Fund services its investors through its own in-house RTA set up.

Both the RTAs have vibrant network of their local offices which enable the Mutual Fund Investors to transact locally. These touch points (or) Customer Service Centers (CSCs), provide a wide range of servicing including, financial transaction acceptance & processing, non financial changes, KYC fulfillment formalities, nomination registration, transmission of units apart from providing statement of accounts etc.

These two RTAs also provide most of the similar facilities in their respective websites which are very user friendly.

Average assets under management

Assets under management (AUM) is a financial term denoting the market value of all the funds being managed by a financial institution (a mutual fund, hedge fund, private equity firm, venture capital firm, or brokerage house) on behalf of its clients, investors, partners, depositors, etc.
The average assets under management of all mutual funds in India for the quarter Dec 2015 to Mar 2016 (in ₹ Lakh) is given below:[6]

Sr No Mutual Fund Name Total Schemes QAAUM AUM (₹ Lakh.) Prev QAAUM (₹ Lakh.) Inc/Dec (₹ Lakh.) Percentage
1Axis Asset Management Company2633776454.373456348.883201059%
2Baroda Pioneer Asset Management Company111965630.33925542.12401324%
3Birla Sun Life Asset Management Company80613678510.713684493.3453120%
4BNP Paribas Asset Management Company114509706.79500795.2192092%
5BOI AXA Asset Management Company76238501.41242767.9128871%
6Canara Robeco Asset Management Company142804326.86751779.86526277%
7Deutsche Asset Management Company827698171941050461%
8DHFL Pramerica Asset Management Company4912598683.24216345-80979-37%
9DSP BlackRock Asset Management Company3984015131.253918267.17968652%a
10Edelweiss Asset Management Company70167774.29163236.2845383%
11Escorts Asset Management Company6028559.1829222.27-663-2%
12Franklin Templeton Asset Management Company2006784076.497172216.54-384257-5%
13Goldman Sachs Asset Management Company18610139.99685179.35-75039-11%
14HDFC Asset Management Company117317608456.4417866622.24-256390-1%
15HSBC Global Asset Management Company155790382.19837762.82-47151-6%
16ICICI Prudential Asset Management Company152917596397.6172236993907512%
17IDBI Asset Management Company92689266.37756428.17-67162-9%
18IDFC Asset Management Company4535228379.465486421.83-249600-5%
19IIFCL Asset Management Asset135797.5634293.8915044%
20IIFL Asset Management Company1848543.7642203.84634015%
21IL & FS Infra Asset Management Company1292296.3490029.522673%
22Indiabulls Asset Management Company56528955.04491675.45372798%
23JM Financial Asset Management1791616090.421586776.74293132%
24J.P. Morgan Asset Management Company141641451.9750109.43-107986-14%
25Kotak Mahindra Asset Management Company4315873108.275513383.023624647%
26L&T Asset Management Company2462594480.12505850.82899904%
27LIC Nomura Mutual Fund Asset Management Company1761315562.41238408.04929428%
28Mirae Asset Management Company55313272.14280239.043310112%
29Motilal Oswal Asset Management Company31468921.13455222.64141033%
30Peerless Asset Management Company5798524.1102441.7-3917-4%
31PPFAS Asset Management Company161357.162931.88-1575-3%
32Principal Asset Management Company123528106.02587875.66-59770-10%
33Quantum Asset Management Company1566093.0465531.635611%
34Reliance Asset Management Company101515936949.3415787817.361525611%
35Religare Global Asset Management Company2671959617.911988459.31-28622-1%
36Sahara Asset Management Company689929.1611002.32-758-7%
37SBI Asset Management Company65210732737.3610058453.696727607%
38Shriram Asset Management Company43716.983711.5350%
39Sundaram Asset Management Company4792366370.942187696.571853028%
40Tata Asset Management Company3243186223.173155590.09267521%
41Taurus Asset Management Company65394858.04350334.194452413%
42Union KBC Asset Management Compay60290228.21273213.25170156%
43UTI Asset Management Company122010630921.8210612903.52161240%
S. No Seller Acquired By Year
1Alliance Capital MFBirla Sunlife 2005
2Standard CharteredIDFC2008
3AIG Global Investment Group MFPineBridge MF2011
4Benchmark Mutual FundGoldman Sachs2011
5FidelityL&T Finance2012
6Morgan Stanley'sHDFC2013
7PineBridge MFKotak MF2014
8ING Mutual FundBirla Sunlife2014
9Daiwa AMCSBI MF2013
10Goldman SachsReliance MF2015
12JP MorganEdelweiss2016


  1. "MF History". Association of Mutual Funds of India.
  2. "Mutual Funds in India". Kotak Securities. 13 December 2014. Retrieved 27 April 2015.
  3. "Association of Mutual Funds, India". Retrieved 4 September 2013.
  4. "Boston Analytics - India Watch". Retrieved 4 September 2013.
  5. "Average AUM - Fund-wise". June 2013. Retrieved 4 September 2013.
  6. "Average AUM". Association of Mutual Funds in India. Retrieved April 6, 2016.
This article is issued from Wikipedia - version of the 9/12/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.