SBI Mutual Fund average AUM surges to record ₹11 lakh crore in Q2, surpassing competitors ICICI and HDFC

SBI Mutual Fund, the country’s largest asset management company (AMC), has achieved a record average asset under management (AAUM) of ₹10.99 lakh crore in the September quarter (Q2 FY25), according to data from the Association of Mutual Funds in India (AMFI).

The fund house concluded FY24 with an AAUM of ₹9.14 lakh crore. Notably, in June 2024, SBI Mutual Fund became the first mutual fund house to surpass the ₹10 lakh crore mark in AAUM. Over the period from FY19 to FY24, its AAUM recorded a compound annual growth rate (CAGR) of approximately 26%.

This growth can be attributed to a steady increase in the Systematic Investment Plan (SIP) book. As of June 3, 2024, SBI Mutual Fund had assets that were 30% and 45% higher than those of its nearest competitors, ICICI Mutual Fund and HDFC Mutual Fund, which had AAUMs of ₹8.41 lakh crore and ₹7.59 lakh crore, respectively.

Mutual funds have become the preferred investment choice for Indian retail investors in recent years, offering a way to tap into the growth of the country’s financial markets. This surge in popularity is largely driven by the rapid expansion of the Indian economy, offering investors the opportunity to benefit from the country’s dynamic economic landscape.

Retail inflows into mutual funds have been on a consistent upward trajectory since 2020, growing stronger with each passing month. A significant portion of these inflows comes from millennials, who are embracing stock market investments much faster than previous generations.

While some prefer direct investments through demat accounts, many still favour the steady approach of systematic investment plans (SIPs) as it helps in rupee cost averaging and investing in a disciplined manner without worrying about market volatility and timing the market.

According to the latest data from AMFI, Indian mutual funds currently have 9.87 crore SIP accounts. 

Significant growth

Average assets under management of the Indian mutual fund industry in September 2024 stood at ₹68 lakh crore. Meanwhile, AUM of the mutual fund industry as of September 30, 2024, stood at ₹67.09 lakh crore.

The AUM of the Indian MF industry has grown from ₹9.59 trillion as of September 30, 2014, to ₹67.09 trillion as of September 30, 2024, around a 7-fold increase in a span of 10 years.

The mutual fund industry’s assets under management have experienced remarkable growth, increasing from ₹24.51 lakh crore as of September 30, 2019, to ₹67.09 lakh crore as of September 30, 2024—an increase of more than twofold over five years.

The industry's AUM first crossed the ₹10 lakh crore milestone in May 2014. Within just three years, the AUM size has more than doubled, surpassing ₹20 lakh crore for the first time in August 2017.

This upward trajectory continued, with the AUM reaching ₹30 lakh crore for the first time in November 2020. As of September 30, 2024, the total AUM in the industry stood at ₹67.09 lakh crore, according to the AMFI. 

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