Mutual Funds: The share of India’s top-10 fund houses in assets managed by mutual funds is continuously decreasing. Even after reducing the stake, these mutual funds still have a large share in the total assets under management (AUM), but this has decreased in recent times. According to the report of Business Standard, this information has been obtained from the data of the last six years. The average AUM of the ten big fund houses in the third quarter of the financial year 2023-24 was Rs 38.80 lakh crore, which is 79 percent of the total AUM of Rs 49.20 lakh crore. In such a situation, the share of big fund houses in assets under management has decreased since the financial year 2019-20. Till a few years ago, big fund houses used to hold up to 84 percent stake in small mutual fund companies, which has continuously decreased in the last few years.
Why is the share decreasing?
The main reason behind the declining share of big mutual fund houses in AUM is that the number of mutual fund companies in the country has increased rapidly. Along with this, increasing participation of debt funds in total AUM is also one of the main reasons for this. It has also been revealed in this report that big fund houses have a major stake in active debt funds in the country. Big 10 mutual fund companies have up to 70 percent stake in active equity AUM.
Since the Corona epidemic, there has been an increase in the total AUM of debt funds in active equity schemes in the country. The industry’s share in active equity funds was 28 percent in February 2020, which has now increased to 41 percent. According to data from the Association of Mutual Funds in India (AMFI), the share of active debt funds has come down from 45 percent to only 28 percent.
In the third quarter of FY 2024, the average AUM of mutual funds has registered an increase of 5 percent and has increased to Rs 49.30 lakh crore. These figures are also special because the average AUM has increased for the sixth consecutive quarter. This report has also revealed that a large number of people are preferring to invest in mutual funds through systematic investment plans.
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