 "SBI Mutual Fund, SBI MF")
SBI Mutual Fund (SBI MF) made history on Monday by becoming the first fund house in the country to achieve the Rs 10 trillion milestone in assets under management (AUM). The industry leader has adeptly navigated the post-pandemic equity boom and capitalised on the increasing awareness of MF investing.
The sharp growth in SBI MF’s AUM, alongside the overall industry, has been driven by the equity market rally and expanding MF investor base.
The growth in MF AUM hinges on both the appreciation in assets held by schemes and fresh inflows.
“We have momentum on our side. Our product launches have been timely. Over the years, we’ve expanded our reach to newer corners of the country and bolstered our SIP book. Leveraging the parent SBI’s network, along with collaborations with other distributors, has been instrumental in our growth,” said D P Singh, deputy managing editor and joint chief executive officer, SBI MF
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As of April 2024, SBI accounted for Rs 2 trillion of SBI MF’s AUM. Over Rs 5 trillion of the AUM was in direct plans, with the remaining Rs 2.2 trillion linked to other distributors.
Institutional investors held nearly Rs 5 trillion of the total AUM, with a substantial portion belonging to the Employees’ Provident Fund Organisation. The retirement body invests in passive MF schemes of SBI MF and a few other fund houses.
Most other top five fund houses are also backed by leading banks.
ICICI Prudential MF, HDFC MF, Nippon India MF, and Kotak MF complete the top five.
SBI MF had an average AUM of Rs 3.7 trillion for the three-month period ending March 2020, when it first claimed the top spot in the AUM ranking. Since then, its AUM growth has consistently outpaced the industry average for three of the past four financial years, widening its lead over other players.
During this period, the MF industry’s AUM has surged 2.6x to Rs 57 trillion. The market has demonstrated similar growth, with the National Stock Exchange Nifty 50 rising 2.6x between March 2020 and April 2024.
Passive and international funds constitute the largest share of SBI MF’s total AUM at 36 per cent, followed by active equity schemes at 29 per cent. Active debt schemes hold an 18 per cent share of the total AUM.
The industry’s unique investor count has surged from 20 million in March 2020 to 45 million in March 2024.
The growing appeal of MFs after the pandemic has been driven by multiple factors, including an attractive equity market, a lack of inflation-beating investment options, and a surge in the ease of investing with the launch of several online investment platforms.
