In terms of assets under management (AUM), the mutual fund industry in India has been experiencing steady growth over the past few years. During the FY 2016-FY 2019 period, the mutual fund industry AUM increased at a rate of ~22.94% and is expected to reach INR ~918.54 Tn by FY 2024. This growth can be attributed to the growing importance of the ‘savings culture’ among people and inclination towards systematic investment plan (SIP) schemes. Both individuals and institutional investors are expected to contribute equally to the growth of the market during the forecast period. Major players operating in the Indian mutual fund industry include HDFC Asset Management Company Limited, Reliance Nippon Life Asset Management Limited, Aditya Birla Sun Life AMC Limited, Axis Asset Management Company Limited and DSP Investment Managers Private Limited.
Market segment insights
As of June 2019, retail investors held the highest market share (~91.56%) in the overall mutual fund industry, in terms of the number of accounts. Retail investors also hold the maximum number of accounts across different types of funds, equity-oriented schemes being the most popular. Among the different kinds of mutual fund schemes, equity-oriented plans held a share of ~72.4% in the overall market in terms of number of accounts, as recorded in June 2019.
Key growth drivers of the market
• The proclivity to save money among people in the country is fueling the growth of the mutual fund industry in India. During the early-2000s, Indians used to make investments in physical assets and financial assets at the ratio of 3:2, which became 1:1 in FY 2019. This led to an inflow of INR ~3 Tn in the Indian financial sector by FY 2019.
• A rise in preference towards SIP schemes has recently been observed among investors in the country. The total contribution of SIP investments was INR ~679.1 Bn in FY 2018, which increased to INR ~926.93 Bn in FY 2019. A rise in SIP investments in the coming years is expected to drive growth in the Indian mutual fund industry.
Key deterrents to the growth of the market
Though, of late, the population has been expressing interest in mutual funds, lack of efficiency of asset management companies presents a challenge for the penetration of mutual funds across India. Companies often tend to limit their expenses for the development and maintenance of distribution channels only in tier 1 cities.
Companies covered
• HDFC Asset Management Company Limited
• Reliance Nippon Life Asset Management Limited
• Aditya Birla Sun Life AMC Limited
• Axis Asset Management Company Limited
• DSP Investment Managers Private Limited
• Franklin Templeton Asset Management (India) Private Limited
• ICICI Prudential Asset Management Company Limited
• Kotak Mahindra Asset Management Company Limited
• SBI Funds Management Private Limited
• UTI Asset Management Company Limited
Chapter 1: Executive summary
Chapter 2: Socio-economic indicators
Chapter 3: Introduction
3.1. Structure of mutual funds
3.2. Operational flow of mutual funds
3.3. Types of mutual funds
3.4. Investors in mutual funds
3.5. Benefits of investing in mutual funds
Chapter 4: Market overview
4.1. Indian mutual fund market overview
4.2. Newly launched schemes for Q1 of FY 2020
4.3. AUM of different mutual funds as of end of June 2019 quarter
4.4. Top 10 popular mutual funds in India
4.5. AUM based on geography – top 10 cities of India
4.6. State-wise/union territory-wise contribution to AAUM for August 2019
4.7. Mutual fund market segmentation – based on investor and types of schemes
4.8. Systematic investment plan
Chapter 5: Industry scenario
5.1. Total assets managed during FY 2019
5.2. Composition of mutual fund – by major asset class-wise
5.3. Composition of mutual fund – by investor type
5.4. Composition of investor’s holding in mutual fund
5.6. Growth in investor’s holding
Chapter 6: Market influencers
6.1. Market drivers
6.2. Market challenges
Chapter 7: Regulatory updates of the mutual fund industry
Chapter 8: Competitive landscape
8.1. Porter’s five forces analysis
8.2. HDFC Asset Management Company Limited
- Company information
- Products/services
- Business description
- Key people
- Asset under management (AUM) (in INR Bn)
- Segment-wise
- Geography-wise
- Financial snapshot (INR Bn)
Note: Similar information covered for all other public companies. Private companies' data given on best effort basis.
8.3. Reliance Nippon Life Asset Management Limited
8.4. Aditya Birla Sun Life AMC Limited
8.5. Axis Asset Management Company Limited
8.6. DSP Investment Managers Private Limited
8.7. Franklin Templeton Asset Management (India) Private Limited
8.8. ICICI Prudential Asset Management Company Limited
8.9. Kotak Mahindra Asset Management Company Limited
8.10. SBI Funds Management Private Limited
8.11. UTI Asset Management Company Limited
Chapter 9: Recent developments
Chapter 10: Appendix
10.1. Research methodology
10.2. About Netscribes
10.3. Disclaimer
In terms of assets under management (AUM), the mutual fund industry in India has been experiencing steady growth over the past few years. During the FY 2016-FY 2019 period, the mutual fund industry AUM increased at a rate of ~22.94% and is expected to reach INR ~918.54 Tn by FY 2024. This growth can be attributed to the growing importance of the ‘savings culture’ among people and inclination towards systematic investment plan (SIP) schemes. Both individuals and institutional investors are expected to contribute equally to the growth of the market during the forecast period. Major players operating in the Indian mutual fund industry include HDFC Asset Management Company Limited, Reliance Nippon Life Asset Management Limited, Aditya Birla Sun Life AMC Limited, Axis Asset Management Company Limited and DSP Investment Managers Private Limited.
Market segment insights
As of June 2019, retail investors held the highest market share (~91.56%) in the overall mutual fund industry, in terms of the number of accounts. Retail investors also hold the maximum number of accounts across different types of funds, equity-oriented schemes being the most popular. Among the different kinds of mutual fund schemes, equity-oriented plans held a share of ~72.4% in the overall market in terms of number of accounts, as recorded in June 2019.
Key growth drivers of the market
• The proclivity to save money among people in the country is fueling the growth of the mutual fund industry in India. During the early-2000s, Indians used to make investments in physical assets and financial assets at the ratio of 3:2, which became 1:1 in FY 2019. This led to an inflow of INR ~3 Tn in the Indian financial sector by FY 2019.
• A rise in preference towards SIP schemes has recently been observed among investors in the country. The total contribution of SIP investments was INR ~679.1 Bn in FY 2018, which increased to INR ~926.93 Bn in FY 2019. A rise in SIP investments in the coming years is expected to drive growth in the Indian mutual fund industry.
Key deterrents to the growth of the market
Though, of late, the population has been expressing interest in mutual funds, lack of efficiency of asset management companies presents a challenge for the penetration of mutual funds across India. Companies often tend to limit their expenses for the development and maintenance of distribution channels only in tier 1 cities.
Companies covered
• HDFC Asset Management Company Limited
• Reliance Nippon Life Asset Management Limited
• Aditya Birla Sun Life AMC Limited
• Axis Asset Management Company Limited
• DSP Investment Managers Private Limited
• Franklin Templeton Asset Management (India) Private Limited
• ICICI Prudential Asset Management Company Limited
• Kotak Mahindra Asset Management Company Limited
• SBI Funds Management Private Limited
• UTI Asset Management Company Limited
