The Indian mutual fund industry has experienced remarkable growth in the past decade. The Assets Under Management (AUM) of the Indian MF Industry has grown from ₹9.75 trillion as on June 30, 2014 to ₹61.16 trillion as on June 30, 2024, more than a 6-fold increase.
Mutual fund houses are the asset management companies that manage and operate mutual funds. They are responsible for deciding when, where, and how to invest the pooled money from investors to meet the investment goals of their mutual fund schemes.
What Are Mutual Fund Houses?
Mutual fund houses, also known as asset management companies (AMCs), are important in the financial industry. They manage the pooled funds of investors in various types of securities. Furthermore, these are regulated by the financial authorities of the government. In India, fund houses come under the Securities Exchange Board of India (SEBI).
In simple terms, a mutual fund house creates and manages a wide range of mutual fund schemes according to different investment objectives. It employs fund managers who are responsible for making investment decisions per the goals of each fund. Their performance is often tracked through the performance of their funds, measured against associated benchmarks and peer performance.
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AMCs offer a variety of funds i.e. equity funds, debt funds, hybrid or balanced funds, and index funds. Since different investors have different goals each type targets different risk profiles and investment horizons. Mutual fund houses earn revenue mostly through management fees and other charges from the funds they manage. These fees are expressed as a percentage of the assets under management (AUM).
What Are The Top 10 Mutual Fund Houses In India?
| Mutual Fund Houses | Average AUM (₹ in lakh crore)^ | No. of schemes* |
| SBI Mutual Fund | 9.9 | 79 |
| ICICI Prudential Mutual Fund | 7.77 | 120 |
| HDFC Mutual Fund | 6.76 | 89 |
| Nippon India Mutual Fund | 4.86 | 86 |
| Kotak Mahindra Mutual Fund | 4.21 | 77 |
| Aditya Birla Sun Life Mutual Fund | 3.53 | 94 |
| UTI Mutual Fund | 3.1 | 68 |
| Axis Mutual Fund | 2.92 | 62 |
| Mirae Asset Mutual Fund | 1.74 | 58 |
| DSP Mutual Fund | 1.56 | 52 |
^Source: AMFI website. Average AUM is inclusive of Domestic Fund of Funds.
*Source: Information taken from respective AMC websites on 2 August 2024.
What Are The Factors To Consider Before Selecting From Various Mutual Fund Houses?
When choosing a mutual fund house, it is essential to consider several factors to make sure that your investments match your goals and risk tolerance. Here are the factors to consider before selecting a mutual fund house/ AMC:
1. Performance: You have to look into how long the mutual fund house has been in business and its track record over time. A company with a long-standing history of stability and consistent performance or a newer fund house with bigger growth opportunities? You can choose as per your risk profile. However, it is important to note that past performance of any AMC or scheme is not an indicator of future returns. Yes, that you see that disclaimer often for a reason!
2. Variety of Funds Offered: Different investors have different needs. You must check if the mutual fund house offers a variety of funds that match different investment goals, like growth potential, additional income or saving for retirement.
3. Fees and Expenses: Mutual fund houses charge fees that can eat into your investment returns. Look for transparent fee structures and compare the expense ratios of similar funds. This is because higher fees can significantly impact long-term growth.
4. Risk Management: Understand how the mutual fund house manages risk. Specifically, look for information on their investment approach and the types of assets they invest in, as this will give you insight into the potential risk level of their funds.
Top Mutual Fund Houses in India 2024
Here is a list of top mutual fund houses in India as per their average AUM:
1. SBI Mutual Fund
SBI Mutual Fund is one of the largest and oldest mutual fund houses in India, offering a wide range of investment options across equity, debt and hybrid funds. These funds provide for wealth creation, retirement planning, tax saving, liquidity parking and future investment for children. They cater to more than 4,50,000 investors.
2. ICICI Prudential Mutual Fund
ICICI Prudential Mutual Fund is one of the leading asset management companies in India. Established in 1987, this fund house has evolved to provide diversified investment options, including equity, debt, hybrid and liquid funds.
3. HDFC Mutual Fund
HDFC Mutual Fund is the leading mutual fund investment company in India. It is currently the largest mutual fund and actively managed equity mutual fund in the country. It was established in 1999 as a subsidiary of Housing Development Finance Corporation (HDFC) Ltd.
4. Nippon India Mutual Fund
The fund house was formerly known as Religare Mutual Fund and was subsequently rebranded as Nippon India Mutual Fund in 2017 following a partnership between Nippon Life Insurance Company and Religare Enterprises.
5. Kotak Mahindra Mutual Fund
It was started as a joint venture between Kotak Mahindra Bank and Mahindra Group in 1998. It was the first fund house that started gilt funds. Gilt funds are funds that are composed of government securities.
6. Aditya Birla Sun Life Mutual Fund
Aditya Birla Sun Life Mutual Fund is a joint venture between the Aditya Birla Group and Sun Life Financial, one of the leading international financial organisations. It was established in 1994.
7. UTI Mutual Fund
It was established in 1963 by the Government of India. UTI is the oldest mutual fund house in India. It is a pioneer in the mutual fund industry in India, having achieved several milestones. It has entered its 60th year of establishment as Unit Trust of India.
8. Axis Mutual Fund
It is a leading mutual fund company in India, offering a variety of investment products to individual and institutional investors. The company is a subsidiary of Axis Bank, one of India’s largest private sector banks. With over 150 schemes across equities, fixed income and balanced funds, Axis Mutual Fund provides investors with diversified investment options to achieve their financial goals.
9. Mirae Asset Mutual Fund
This is a leading mutual fund company in India, offering a wide range of schemes to investors. The company was established in 2007 and is a joint venture between Mirae Asset Financial Group, a South Korean financial services company and Asset Management of India.
10. DSP Mutual Fund
It is an Indian asset management company that offers a range of investment products. Established in 1996, it has a strong presence in the Indian mutual fund market. The fund house has a wide range of schemes, including passive index funds and actively managed schemes, catering to different investment objectives and risk profiles.
Wrapping Up
Lastly, India’s mutual fund industry has witnessed significant growth in recent years. The top AMCs have played a crucial role in the mutual fund success story. Meanwhile, these leading players have demonstrated their expertise in managing a wide range of funds, catering to diverse investor needs and preferences. Over the years this has allowed investors to harness the power of mutual funds to achieve their long-term financial objectives and create wealth in the years to come.
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DISCLAIMER: Mutual Fund investments are subject to market risks. Read all scheme related documents carefully. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. The securities quoted are for illustration only and are not recommendatory.
