Top AMCs with Highest Market Share!

Did you know that there are 44 Asset Management Companies in India? An immense number, isn't it? But you will be surprised to know that the top 10 fund houses have an 82% collective market share!

With the increased stock market enthusiasm, the mutual fund industry has grown to Rs 32 trillion, with a massive growth of 18% YoY. And 2020 was a golden year for the mutual fund industry as well. Out of the total AMCs, only 10 suffered losses. The 34 others were wise enough to grow their funds due to the stock market crash.

AMCs that dominate the market

Here is the list of the top 5 AMCs that have more than 57% market share in the mutual fund industry:

1. SBI Mutual Fund

It looks like the PSU craze is omnipresent. From dividend stocks to mutual funds, PSUs remain at the top.

Anyway, SBI MF retained the top spot among AMCs, with Assets Under Management (AUM) of Rs 5 trillion! It has more than 140 mutual funds, which cater to different investment goals. In simple words, it has a fund for every purpose, ranging from child education, marriage to retirement planning.

The trending fund is the SBI Equity Hybrid Fund, with annual returns of 15% (since inception in 1995). But they were lower when compared to 1 Year or 3-Year returns. It has an expense ratio of 1.69%, with an exit load of 1%, applicable on redemption over 10% of investments. E.g., If you invest Rs 10,000 and redeem Rs 3,000 within a year, then the exit load will be Rs 20. It is managed by R Srinivasan and Dinesh Ahuja, with an AUM of Rs 37787 Crores.

2. HDFC Mutual Fund

Although the HDFC group dominates the stock market indices, its AMC lacks behind SBI. It has an AUM of Rs 4.16 trillion. It has lesser numbers of mutual funds among the top 5 AMCs, but quality exceeds quantity. 92% of its funds have beaten the benchmark index. Pretty cool, right? Besides being an investment platform, it also contributes to making investors financially literate through blogs, videos, and quizzes., just like we do :)

The best-performing fund is HDFC Small Cap Fund. Can you guess its 1 Year returns? You will be amazed to know that it is 105.23%! What's more, its expense ratio is 0.88%. Started in 2013, this fund has an AUM of Rs 10050 Crore, under the supervision of Chirag Setalvad and four other professionals. Although it is an AMC, it is listed on the stock exchange as well. So, you can also invest in HDFC AMC to earn good returns.

3. ICICI Prudential Mutual Fund

After SBI and HDFC Mutual Fund come the ICICI Prudential Mutual Fund, with an AUM of Rs 4.05 trillion. It has served 62 Lakh customers with 68 schemes in the two decades of its operations. Like HDFC Mutual Fund, it has blogs, videos, and calculators to spread financial literacy. It has also classified mutual funds into different categories like debt, equity, hybrid, etc., for allocating investment in various classes.

You wouldn't believe that its best fund is an index fund: ICICI Prudential Sensex Fund Direct-Growth. As the name suggests, it has BSE Sensex as the benchmark index. Its 1-year and 3-year returns are above the category average. But the expense ratio is as low as 0.1%, that too, without any exit load. Managed by Kayzad Eghlim, the fund commenced in September 2017 and an AUM of Rs 248 Cr.

4. Aditya Birla Sun Life Mutual Fund

When we talk about big players, how can we forget Aditya Birla Group? This AMC is a joint venture between Aditya Birla Group and Sun Life Financial, a leading financial service organization in Canada. What's more, their website has an exciting feature of Smart Selfie. It includes the financial goal and the achievement date. So, check it out when you visit their website and put it as your phone's wallpaper to remind you continuously of your goals. The site also shows market updates.

Surprisingly, its top-performing mutual fund is the Aditya Birla Sun Life Government Securities Fund. It has Nifty All Duration G-Sec (Government Securities) as its benchmark. As it is a debt fund, the risk is also moderate. It has generated above-average returns when compared among different periods. And has a low expense ratio of 0.52%, without any exit load. Started in January 2013, it is managed by Bhupesh Bameta with an AUM of Rs 518 Cr. 

5. Kotak Mahindra Mutual Fund

At number 5, we have a new entrant: Kotak Mahindra MF, with an AUM of Rs 2.33 trillion. Like other AMCs, it also has different funds for investing in different asset classes. A unique feature is "Talk to Mr. SIP." Here, you can get answers to your queries about SIP through an AI-powered chatbot. Hence, you can get relevant information in the blink of an eye. It is an apt example to know that Artificial Intelligence is the future.

Anyways, its best fund is the Kotak India EQ Contra Fund Direct-Growth, with Nifty 100 TRI as the benchmark index. It gave 63.2 % returns in the previous year! It is considered the best mutual fund in its category (on comparing long-term returns). Started in 2013, it has an AUM of Rs 943 Crore under the supervision of Deepak Gupta and Shibani Kurian. It has an expense ratio of 1.03% and an exit load of 1% (if redemption of more than 10% of investment within a year).

The Bottom Line

In this article, you got to know the top 5 AMCs: SBI MF, HDFC MF, ICICI Prudential MF, Aditya Birla Sun Life MF, and Kotak Mahindra MF. Although they are considered the best AMCs, it's not like that all of their mutual funds are the best. Some funds of other fund houses may outperform them.

So, remember to do proper research. Analyze and compare the different factors like expense ratio, returns, exit load, investment objective, and others while choosing a mutual fund. 

In the end, remember that it's your hard-earned money. So, make an informed decision to get the best out of it.