Mutual funds in India

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The first introduction of a mutual fund in India occurred in 1963, when the Government of India
launched Unit Trust of India (UTI).[1] UTI enjoyed a monopoly in the Indian mutual fund market
until 1987, when a host of other government-controlled Indian financial companies established
their own funds, including State Bank of India, Canara Bank, and Punjab National Bank. This
market was made open to private players in 1993, as a result of the historic constitutional
amendments brought forward by the then Congress-led government under the existing regime of
Liberalization, Privatization and Globalization (LPG). The first private sector fund to operate in
India was Kothari Pioneer, which later merged with Franklin Templeton. In 1996, SEBI, the
regulator of mutual funds in India, formulated the Mutual Fund Regulation which is a
comprehensive regulatory framework.[2]

Contents
[hide]

1 Mutual funds are an under tapped market in India

2 Distribution

3 Servicing

4 Average assets under management

5 References

Mutual funds are an under tapped market in India[edit]

Deposit being available in the market[3] less than 10% of Indian households have invested in
mutual funds.[citation needed] A recent report on Mutual Fund Investments in India published by research
and analytics firm, Boston Analytics, suggests investors are holding back from putting their
money into mutual funds due to their perceived high risk and a lack of information on how
mutual funds work.[4] There are 46 Mutual Funds as of June 2013.[5]

The primary reason for not investing appears to be correlated with city size. Among respondents
with a high savings rate, close to 40% of those who live in metros and Tier I cities considered
such investments to be very risky, whereas 33% of those in Tier II cities said they did not know
how or where to invest in such assets.[citation needed]
Distribution[edit]
Mutual fund investments are sourced both from institutions (companies) and individuals. Since
January 2013, institutional investors have moved to investing directly with the mutual funds
since doing so saves on the expense ratio incurred. Individual investors are, however, served
mostly by Investment advisor and banks. Since 2009, online platforms for investing in Mutual
funds have also evolved.

Servicing[edit]
Larger Indian Mutual Fund Industry has benefited from outsourcing the activity of servicing their
investors to two of the leading Registrar and Transfer Agents (RTAs) in India namely CAMS and
Karvy. While CAMS commands close to 65% of the Assets servicing, rest is with Karvy.
Franklin Templeton Mutual Fund services its investors through its own in-house RTA set up.

Both the RTAs have vibrant network of their local offices which enable the Mutual Fund
Investors to transact locally. These touch points (or) Customer Service Centers (CSCs), provide a
wide range of servicing including, financial transaction acceptance & processing, non financial
changes, KYC fulfillment formalities, nomination registration, transmission of units apart from
providing statement of accounts etc.

These two RTAs also provide most of the similar facilities in their respective websites which are
very user friendly.

Average assets under management[edit]

Assets under management (AUM) is a financial term denoting the market value of all the funds
being managed by a financial institution (a mutual fund, hedge fund, private equity firm, venture
capital firm, or brokerage house) on behalf of its clients, investors, partners, depositors, etc.
The average assets under management of all mutual funds in India for the quarter Dec 2015 to
Mar 2016 (in Lakh) is given below:[6]

Sr Total QAAUM AUM Prev QAAUM Inc/Dec

Mutual Fund Name Percentage
No Schemes ( Lakh.) ( Lakh.) ( Lakh.)
Axis Asset
1 263 3776454.37 3456348.88 320105 9%
Management Company
Baroda Pioneer Asset
2 111 965630.33 925542.12 40132 4%
Management Company
Birla Sun Life Asset
3 806 13678510.7 13684493.34 5312 0%
Management Company
BNP Paribas Asset
4 114 509706.79 500795.21 9209 2%
Management Company
BOI AXA Asset
5 76 238501.41 242767.91 2887 1%
Management Company
 Sr Total QAAUM AUM Prev QAAUM Inc/Dec
Mutual Fund Name Percentage
No Schemes ( Lakh.) ( Lakh.) ( Lakh.)
Canara Robeco Asset
6 142 804326.86 751779.86 52627 7%
Management Company
Deutsche Asset
7 8 27698 17194 10504 61%
Management Company
DHFL Pramerica Asset
8 491 2598683.24 216345 -80979 -37%
Management Company
DSP BlackRock Asset
9 398 4015131.25 3918267.17 96865 2%
Management Company
Edelweiss Asset
10 70 167774.29 163236.28 4538 3%
Management Company
Escorts Asset
11 60 28559.18 29222.27 -663 -2%
Management Company
Franklin Templeton
12 Asset Management 200 6784076.49 7172216.54 -384257 -5%
Company
Goldman Sachs Asset
13 18 610139.99 685179.35 -75039 -11%
Management Company
HDFC Asset
14 1173 17608456.44 17866622.24 -256390 -1%
Management Company
HSBC Global Asset
15 155 790382.19 837762.82 -47151 -6%
Management Company
ICICI Prudential Asset
16 1529 17596397.6 17223699 390751 2%
Management Company
IDBI Asset
17 92 689266.37 756428.17 -67162 -9%
Management Company
IDFC Asset
18 453 5228379.46 5486421.83 -249600 -5%
Management Company
IIFCL Asset
19 1 35797.56 34293.89 1504 4%
Management Asset
IIFL Asset
20 18 48543.76 42203.84 6340 15%
Management Company
IL & FS Infra Asset
21 12 92296.34 90029.5 2267 3%
Management Company
Indiabulls Asset
22 56 528955.04 491675.45 37279 8%
Management Company
JM Financial Asset
23 179 1616090.42 1586776.74 29313 2%
Management
J.P. Morgan Asset
24 141 641451.9 750109.43 -107986 -14%
Management Company
Kotak Mahindra Asset
25 431 5873108.27 5513383.02 362464 7%
Management Company
26 L&T Asset 246 2594480.1 2505850.82 89990 4%
 Sr Total QAAUM AUM Prev QAAUM Inc/Dec
Mutual Fund Name Percentage
No Schemes ( Lakh.) ( Lakh.) ( Lakh.)
Management Company
LIC Nomura Mutual
27 Fund Asset 176 1315562.4 1238408.04 92942 8%
Management Company
Mirae Asset
28 55 313272.14 280239.04 33101 12%
Management Company
Motilal Oswal Asset
29 31 468921.13 455222.64 14103 3%
Management Company
Peerless Asset
30 57 98524.1 102441.7 -3917 -4%
Management Company
PPFAS Asset
31 1 61357.1 62931.88 -1575 -3%
Management Company
Principal Asset
32 123 528106.02 587875.66 -59770 -10%
Management Company
Quantum Asset
33 15 66093.04 65531.63 561 1%
Management Company
Reliance Asset
34 1015 15936949.34 15787817.36 152561 1%
Management Company
Religare Global Asset
35 267 1959617.91 1988459.31 -28622 -1%
Management Company
Sahara Asset
36 68 9929.16 11002.32 -758 -7%
Management Company
SBI Asset Management
37 652 10732737.36 10058453.69 672760 7%
Company
Shriram Asset
38 4 3716.98 3711.53 5 0%
Management Company
Sundaram Asset
39 479 2366370.94 2187696.57 185302 8%
Management Company
Tata Asset
40 324 3186223.17 3155590.09 26752 1%
Management Company
Taurus Asset
41 65 394858.04 350334.19 44524 13%
Management Company
Union KBC Asset
42 60 290228.21 273213.25 17015 6%
Management Compay
UTI Asset
43 1220 10630921.82 10612903.52 16124 0%
Management Company
Gross 11856 135912187.2 132170477.1
S. No Seller Acquired By Year
1 Alliance Capital MF 000Birla Sunlife 02005
2 Standard Chartered 000IDFC 02008
3 AIG Global Investment Group MF 000PineBridge MF 02011
4 Benchmark Mutual Fund 000Goldman Sachs 02011
 S. No Seller Acquired By Year
5 Fidelity 000L&T Finance 02012
6 Morgan Stanley's 000HDFC 02013
7 PineBridge MF 000Kotak MF 02014
8 ING Mutual Fund 000Birla Sunlife 02014
9 Daiwa AMC 000SBI MF 02013
10 Goldman Sachs 000Reliance MF 02015
11 Deutsche 000Pramerica 02015
12 JP Morgan 000Edelweiss 02016