51% in 1 Year: SBI Mutual Fund’s AUM Crosses 6 Lakh Crore

The Asset Under Management (AUM) of SBI Mutual Fund, the country's largest mutual fund house, has reached Rs 6 lakh crore.
51% in 1 Year: SBI Mutual Fund’s AUM Crosses 6 Lakh Crore
Source: Google/ Image Credit: Dainik Bhaskar

The Asset Under Management (AUM) of SBI Mutual Fund, the country's largest mutual fund house, has reached Rs 6 lakh crore. It has achieved this feat in the month of August. Its AUM has grown by 51% in 1 year.

AUM was 4.21 lakh crore in September 2020

According to the data, the AUM of SBI Mutual Fund in the September quarter last year was Rs 4.21 lakh crore. Now it has crossed 6 lakh crore in August. Talking about the top 5 fund houses in the country, ICICI Prudential Mutual Fund is at number two. Its AUM stood at Rs 4.51 lakh crore in July. Whereas the AUM of HDFC Mutual Fund stood at Rs 4.48 lakh crore in July.

Birla Mutual Fund at number four

Birla Mutual Fund is at number four while Kotak Mutual Fund is at number five. Actually, the AUM of the mutual fund industry is increasing because the equity market is continuously making new records. While the Sensex is beyond 58 thousand, the market cap of listed companies has reached Rs 255 lakh crore for the first time.

Sources: Google/ Image Credit: Dainik Bhaskar
Sources: Google/ Image Credit: Dainik Bhaskar

14,500 crores collected from NFO

SBI Mutual Fund collected Rs 14,500 crore from New Fund Offer (NFO) in the month of August. It had launched Balanced Advantage Fund. 4 lakh investors participated in it. This is a record so far in the Indian mutual fund industry. Earlier, the NFO of any fund house had not raised so much money. ICICI Prudential had raised Rs 10,000 crore from its Flexicap fund in August itself.

In fact, the country's largest bank like SBI also acts as a channel partner with SBI Mutual Fund. Its mutual funds benefit from its widest network. SBI Mutual Fund has achieved decent growth in recent times. Earlier it used to be the number three-fund house.

The total AUM of the mutual fund industry is 35 lakh crores

The total AUM of the country's mutual fund industry is currently Rs 35 lakh crore. The total AUM in September 2012 was only Rs 7.47 lakh crore. Now it has increased almost 5 times in the last 9 years. Also, there are about 9 crore folios in mutual funds. Folio is the number of accounts of the investors.

Growth in AUM is happening fast in the equity market

SBI Mutual Fund's Chief Business Officer DP Singh says that the growth in AUM is mainly due to the strong rally in the equity market. Investors are showing a good response at this time. The Balanced Advantage Fund is a new example of this. It has about 1 crore folios. Its equity category AUM is Rs 3.04 lakh crore. The AUM of its passive fund is Rs 1.5 lakh crore.

Between March and July this year, the mutual fund received Rs 51,200 crore in equity. However, in the intervening few months, investors also pulled out money from this category. Because the investors made profits due to the rise in the market.

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