SBI Mutual Fund Becomes First to Top Rs 10 Trillion in Assets Under Management

SBI Mutual Fund (SBI MF) achieved a historic milestone on Monday by becoming the first fund house in India to surpass Rs 10 trillion in assets under management (AUM). This significant accomplishment is attributed to the post-pandemic equity boom and a growing awareness of mutual fund investing.

Key Drivers of Growth

Equity Market Rally and Expanding Investor Base

The surge in SBI MF’s AUM reflects the broader industry trend driven by the equity market rally and an expanding base of mutual fund investors. The growth is fueled by both asset appreciation within schemes and fresh inflows.

Strategic Product Launches and Expanded Reach

D P Singh, Deputy Managing Director and Joint CEO of SBI MF, emphasized the importance of timely product launches and expanding reach across India. Leveraging the parent company SBI’s network and collaborating with other distributors have been pivotal in their success.

Institutional and Retail Contributions

Significant Institutional Investments

Institutional investors, including the Employees’ Provident Fund Organisation, hold nearly Rs 5 trillion of the total AUM, primarily in passive schemes. As of April 2024, SBI’s own contributions accounted for Rs 2 trillion of SBI MF’s AUM.

Retail Investors and SIP Growth

Over Rs 5 trillion of the AUM is in direct plans, with the remaining Rs 2.2 trillion linked to other distributors. The growth in Systematic Investment Plans (SIPs) has also bolstered their retail investor base.

Industry Leadership

Consistent AUM Growth

Since first claiming the top spot in AUM rankings in March 2020 with an average AUM of Rs 3.7 trillion, SBI MF has consistently outpaced the industry average, widening its lead over competitors like ICICI Prudential MF, HDFC MF, Nippon India MF, and Kotak MF.

Surge in Unique Investors

The mutual fund industry’s unique investor count has surged from 20 million in March 2020 to 45 million in March 2024, highlighting the growing appeal of mutual funds.

Portfolio Composition

Diverse Investment Schemes

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

Post-Pandemic Investment Trends

Increased Appeal of Mutual Funds

The appeal of mutual funds has grown post-pandemic, driven by an attractive equity market, a lack of inflation-beating investment options, and the convenience of online investment platforms.

Piyush Shukla

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