Public sector mutual funds, once dominant players in the industry, have gradually ceded market share to the private sector, a report by CII-KPMG said. “Public sector mutual funds comprised 21 per cent of Assets Under Management (AUM) in 2009 against 72 per cent of the AUM in 2001,” the report said.
It is not only in terms of AUM, but even the number of PSU mutual funds has declined from 11 in 2001 to five in 2009.
At present, UTI, LIC and SBI are the main PSU players and together have about 20 per cent share in the AUM, the report said quoting data from the Association of Mutual Funds in India. While the PSU presence in running asset management companies or mutual funds is declining, many PSUs, particularly banks, have been getting engaged in distributing mutual fund products of other companies.