Maiden milestone: SBI Mutual Fund assets cross ₹10 trillion benchmark

SBI Mutual Fund (SBI MF) has emerged as the first asset management company (AMC) or fund house in the country as it reached the ₹ 10 lakh crore milestone in assets under management (AUM).

The fund house has been swift to navigate the post-pandemic equity boom and capitalised on the rising awareness related to MF investing.

The sharp spike in SBI MF’s AUM, parallel to the overall industry, has been driven by the equity market rally and growing MF investor base.

The growth in MF AUM is linked to both the rise in assets held by schemes and fresh inflows.

As of April 2024, SBI accounted for ₹ 2 lakh crore of SBI MF’s AUM. More than ₹ 5 lakh crore of the AUM was in direct plans, with the remaining ₹ 2.2 lakh crore linked to other distributors.

Institutional investors held close to ₹ 5 lakh crore of the total AUM, with a significant portion belonging to the Employees’ Provident Fund Organisation (EPFO). The social security body invests in passive MF schemes of SBI MF and a few other AMCs.

Most other top-five AMCs are also backed by leading banks. ICICI Prudential MF, HDFC MF, Nippon India MF, and Kotak MF are among the top five list.

SBI MF had an average AUM of ₹ 3.7 lakh crore for the three-month period ending March 2020, when the fund house first claimed the top spot in the AUM ranking.

After this, its AUM growth has consistently outpaced the industry average for three of the past four financial years, widening its lead over other players.

During this period, the MF industry’s AUM has surged 2.6 times to ₹ 57 lakh crore. The market has exhibited similar growth, with the National Stock Exchange Nifty 50 rising 2.6 times between March 2020 and April 2024.

Passive and international funds comprise the largest share of SBI MF’s total AUM at 36%, followed by active equity schemes at 29%. Active debt schemes hold an 18% share of the total AUM.