The asset base of mutual fund industry grew 12% in September quarter

The asset base of the mutual fund industry reached Rs 27.6 lakh crore in the second quarter ended September, a 12 per cent increase from the previous quarter. The main reason behind this is being said to be a surge in the stock markets. According to the Mutual Fund Association of India (AMFI), assets of 45 companies of the mutual fund industry were under the management of Rs 24.63 lakh crore under various funds in the April-June quarter, which increased 12 per cent to Rs 27.6 lakh crore in the July-September quarter. In the April-June quarter, there was a drop of eight per cent.

 

All the 10 major mutual fund companies recorded growth in assets under management during the July-September quarter. These include SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sunlife Mutual Fund, Nippon India Mutual Fund, Kotak Mutual Fund, Axis Mutual Fund, UTI Mutual Fund, IDFC Mutual Fund and DSP Mutual Fund.

 

It is worth noting that Axis Mutual Fund, UTI Mutual Fund, SBI Mutual Fund and Kotak Mutual Fund have registered an average growth of 14 per cent to 16 per cent over the average growth of the entire industry during this period. Experts believe that the mutual fund industry has grown on a quarter-on-quarter basis due to the market boom, otherwise, the withdrawal of funds from equity funds has shown a lack of confidence in retail investors.

 

Investors also felt better to keep their money in cash than the uncertainty caused by Kovid-19. The asset base of SBI Mutual Fund, the country's largest mutual fund, rose 15.6 per cent to Rs 4,21,364 crore in the second quarter from Rs 3,64,363 crore in the previous quarter. At the same time, the asset base of HDFC Mutual Fund rose 5.4 per cent to Rs 3,75,516 crore in the September quarter as compared to the June quarter. Similarly, ICICI Prudential Mutual Fund's asset base rose 10.3 per cent to Rs 3,60,049 crore. The asset base of Aditya Birla Sunlife Mutual Fund and Nippon India MF grew by 11 per cent to a little over Rs 2,38,674 crore and Rs 2 lakh crore respectively.