The 43-player mutual fund industry closed May with total assets of Rs 43.2 lakh crore despite a fall in net inflows into open-ended mutual funds, which almost halved to Rs 59,879.31 crore from Rs 1.24 lakh crore in April, when the industry-wide AUM stood at Rs 41.61 lakh crore.
SBI Mutual Fund, largest fund house by a wide margin in the 43-player industry, has clocked yet another milestone crossing the Rs 8 lakh crore-mark assets under management, adding Rs 90,000 crore to the asset pile during the first quarter of the fiscal. Given the current run rate in adding AUM (asset under management), the fund house expects to sniff at the Rs 10 lakh crore AUM-mark over the next 12 to 18 months too, a top company official has said.
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The 43-player mutual fund industry closed May with total assets of Rs 43.2 lakh crore despite a fall in net inflows into open-ended mutual funds, which almost halved to Rs 59,879.31 crore from Rs 1.24 lakh crore in April, when the industry-wide AUM stood at Rs 41.61 lakh crore.
“We’ve added Rs 90,000 crore to our March 2023 AUM, when it was Rs 7.10 lakh crore, taking the total assets under our management to over Rs 8 lakh crore. In fact, we crossed the milestone yesterday,” DP Singh, deputy managing director and chief business development officer, told PTI on Tuesday. Singh further said the fund house has set an internal target of crossing the Rs 10 lakh crore-milestone over the next 12-18 months, if the market does not face any serious correction.
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The Rs 8 lakh crore AUM gives us 18 per cent of the overall market share, he said. Singh said of the total AUM, as much as Rs 5.5 lakh crore are in equities and the remaining in debt. The fund house averages Rs 2,200 crore in SIP (systematic investment plans) inflows every month. It can be noted that the fund inflows for quite sometimes has been to SIPs given its easy entry and exit options as also the flexibility on the quantum of investment.
Singh said, as against the industry average of grossing the maximum inflows from the top 30 cities, which in the industry parlance are called B30 cities, SBI has 35 per cent of its 17 million folios across close to 9 million customers coming in from small towns.
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“Our 90,000-plus distributors cover as much as 96 per cent of the PIN codes, which shows our reach beyond the cities,” he said, adding the fund house mops up 20 percent of inflows through the State Bank branches, 50 percent through its distributors and the rest through other channels. SBI Funds Management is a joint venture between the nation’s largest lender State Bank of India and Amundi, the largest European asset manager, and is the investment manager of SBI MNF and SBI Alternative Equity Fund and SBI Alternative Debt Fund.
