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Does your Fund stand among the 10k crore Heavyweights?

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Category:  Market  
| 06-01-2016 03:37 PM

Equity Mutual Funds - 10k Crore

Indian Mutual Industry witnessed a surge in assets in CY 2015 despite the volatility in equities. The key benchmarks lost around 4% to 5% but the MF Industry corpus gained a whopping 24% till 30 Nov 2015. The equity MF corpus stood at around all time high of ` 4 lakh Crores, courtesy the strong participation from the retail investor and robust inflows in equity schemes.

The sluggish trends in real estate, gold and lack of other lucrative investment avenues have allured the investments in MF and especially equities. Even though Sensex and Nifty’s of the world yielded negative returns, but the mid and small caps surged ahead. The growth was subsequently evident in the mid cap, small cap and multi cap funds.

The strong domestic inflows from the retail category aided some funds to gain their corpus even in turbulent times. The benefits of these inflows are majorly passed to the popular names or the stalwarts of the equity MF basket. The continuous strong inflows have helped these popular names surpassing a prominent milestone in their AUM - 10k Crore.

10K Crore Club Members

10K Crore Club

Latest available AUMs; Returns as on 05-01-2016

The 7 schemes listed above are the coveted entries in the elite ` 10K Crore Club. It is a diversified package with Large, Mid, Multi Caps and Hybrid (Equity Oriented Funds). HDFC Equity and Top 200 dominate others in AUM but have been laggards on the 1 year returns front. In a stark contrast, the hybrid fund, ICICI Prudential Balanced Advantage was the winner in 1 year, 3 years and 5 years category.

Overall, these 7 funds command over ` 84000 crores of corpus which tantamount to 20% of the entire equity funds corpus. HDFC which dominates the AMCs in corpus has a significant presence of ~ ` 41000 crores owns 50% of this elite club.

Promising Candidates

Prominent Contenders - ` 10K Crore Club

Latest available AUMs

The bout of investment in MFs have swelled the corpus of other famous equity funds as well. These inflows have helped some of the funds which are prominent contenders to join the club. ICICI Prudential Focused Bluechip Equity missed the opportunity by just a whisker.

Another HDFC Fund, “Prudence” is not far away from the membership. Besides these two contenders, many of the funds are in the 5000 – 6000 crore corpus and will compete with each other if the equity MFs continues to attract Mullah.

Majority of the schemes have witnessed an upsurge in their corpus even with the volatile markets and yielded negative returns in CY15. If the inflows remain positive and the equity market rebounds in 2016, ` 10K Crore club will definitely prosper with new additions and we might also witness an evolution of ` 20K Crore club.

Raghav Chandak Lead Financial Analyst

Over 7 years of experience with competencies in Financial Data Research & Modeling, Financial Product Development & Management and Financial data distribution.