Strengthened by strong gains in stock prices, the average assets under management (AUM) for the mutual fund (MF) industry rose 9 percent during the three-month period ending September 2023, as reported by Business Standard.
This marked the highest quarterly growth for the industry since September 2021. It was also the second consecutive quarter where the AUM growth surpassed five percent, it noted.
The industry’s average quarterly AUM increased 16 percent in the first half of financial year 2023-24, reaching ₹47 trillion, said the report.
The growth in AUM results from both market performance and fresh investments. Given the inflow trend and the performance of various indices, the bulk of the growth was attributed to small-cap and mid-cap funds, it added.
In the first six months of FY24, Nifty Midcap 100 and Nifty Smallcap 100 surged by 35 percent and 42 percent, respectively, as per the report.
In contrast, the large-cap index, Nifty, appreciated by only 13 percent. Among the top 20 fund houses, Parag Parikh Financial Advisory Services, Tata, Invesco, Canara Robeco, and Nippon India were the most substantial gainers in percentage terms, the report stated.
In absolute figures, SBI, ICICI Prudential, and HDFC witnessed the highest growth in average quarterly AUM over the past six months. SBI MF’s AUM increased by over ₹1 trillion in the last six months, it said, citing Amfi.