Which Are The Top 10 Mutual Funds In India?

Aug 17, 2018 9:00 IST 682 views

What do we understand by top mutual funds in India? There are obviously two ways to look at it. The simpler way is to look at the AUM of the top funds at a point in time. Out of the nearly 40 AMCs that are operating in India, the top 10 funds captured in the table below actually account for a little over 80% of the assets under management.

Name of AMC

AUM (Rs. in billion)

As on date

ICICI Prudential MF

3,056

March 31, 2018

HDFC Mutual Fund

3,005

March 31, 2018

Aditya Birla Sun Life MF

2,475

March 31, 2018

Reliance Mutual Fund

2,449

March 31, 2018

SBI Mutual Fund

2,177

March 31, 2018

UTI Mutual Fund

1,549

March 31, 2018

Kotak Mahindra MF

1,247

March 31, 2018

Franklin Templeton MF

1,031

March 31, 2018

DSP Blackrock MF

8,55

March 31, 2018

Axis Mutual Fund

7,73

March 31, 2018

Data Source: AMFI

For a long time, the mutual fund AUM was dominated by the troika of Reliance, HDFC, and ICICI. In the last few months Reliance AMC has slipped to the fourth spot (behind Aditya Birla MF) and SBI mutual fund is fast closing in on Reliance. It is not too clear what the picture will be in the coming quarters but the momentum clearly appears to be in favour of the bancassurance model. Five out of the top-10 in terms of AUM are essentially leveraging on the bancassurance model for AUM.

Let Us Understand The Asset Mix Of The Mutual Fund AUM

If you look at the overall AUM of Rs. 23.2 trillion of the mutual fund industry, it has an exposure of nearly Rs.8 trillion to equities and Rs.8 trillion to the debt. Nearly Rs. 3.5 trillion is exposed to liquid funds while around Rs. 1.8 trillion is exposed to Balanced and Hybrid funds. These four categories account for over 90% of the AUM of the mutual fund industry. Let us now focus on the top performers within each of these categories with an analysis of sub-categories where applicable.

What Are The Top Performers Under Various Fund Categories? 

  • Let us look at equities first. In the large-cap space, INVESCO Growth Opportunities Fund and IDFC Focused Equity have done very well in the 1-year and 3-year categories. In the small and mid-cap segment, HDFC small cap fund and the L&T Mid Cap Fund have done very well in 1-year returns and 3-year returns. When it comes to thematic funds, the infrastructure theme has done extremely well with DSP BR Natural Resources Fund and IDFC Infrastructure Fund doing well on both counts. On the index fund front, Kotak Nifty ETF has been a clear outperformer over the last 3 years.
  • In the long term debt category, SBI Dynamic Fund and IDFC Dynamic Fund have outperformed. It looks like the dynamic strategy has worked in difficult debt markets. In the short term debt fund category, the honours go to the Kotak Corporate Bond Fund and the HDFC Short Term Debt Fund. When it comes to credit opportunities, it is the Kotak Credit Risk Fund and the L&T Credit Risk Fund that have outperformed over the 3 year period. Pure Gilt Funds have been dominated by Edelweiss G-Sec Fund and the L&T and HDFC Gilt Funds.
  • The last category we will look at is the hybrid category. On the balanced funds front (with more than 65% in equity) it is the Principal Hybrid Equity Fund that has scored over the 1 year period and the 3 year period. If you look at the aggressive MIPs (monthly income plans), then UTI Regular Savings and IDFC Regular Savings have done much better than the peer group.

Of course, it needs to be remembered that top funds should not only be understood in terms of returns but also in terms of risk. That is where risk-adjusted measures are really useful.

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