SBI Mutual Fund’s Assets Under Management (AUM) surpasses Rs 8 trillion, sets sights on Rs 10 trillion milestone
SBI Mutual Fund, the leading fund house in India’s mutual fund industry, has achieved a significant milestone by surpassing Rs 8 lakh crore in assets under management (AUM). During the first quarter of the fiscal year, the fund house added Rs 90,000 crore to its asset pile, further strengthening its position.
With the current pace of AUM growth, SBI Mutual Fund anticipates crossing the Rs 10 lakh crore AUM milestone within the next 12 to 18 months. This projection demonstrates the company’s confidence in its growth trajectory and reflects the trust and confidence of investors in SBI Mutual Fund’s offerings.
The achievement highlights SBI Mutual Fund’s success in attracting and retaining investors, as well as its ability to effectively manage and grow its asset base. As one of the major players in the industry, SBI Mutual Fund continues to play a crucial role in the Indian mutual fund market.
The mutual fund industry in India, consisting of 43 players, recorded total assets of Rs 43.2 lakh crore by the end of May. However, there was a decline in net inflows into open-ended mutual funds during the month. The net inflows nearly halved, falling to Rs 59,879.31 crore compared to Rs 1.24 lakh crore in April. It’s worth noting that the industry’s assets under management (AUM) in April stood at Rs 41.61 lakh crore.
Despite the decrease in net inflows, the mutual fund industry maintained a substantial asset base, reflecting the ongoing interest of investors in mutual fund investments. The industry’s AUM reaching Rs 43.2 lakh crore indicates the continued participation of investors and their confidence in the mutual fund sector.
While the net inflows may have experienced a temporary dip, it is important to consider the broader context and long-term trends in the mutual fund industry. Fluctuations in inflows are a natural part of market dynamics, and overall, the mutual fund industry in India continues to play a vital role in wealth creation and investment opportunities for individuals and institutions.
SBI Mutual Fund, the largest fund house in the industry, has achieved a significant milestone by surpassing the Rs 8 lakh crore mark in assets under management (AUM). The fund house witnessed an impressive growth during the first quarter of the fiscal year, adding Rs 90,000 crore to its AUM. This substantial increase in assets reflects the trust and confidence placed by investors in SBI Mutual Fund.
DP Singh, the Deputy Managing Director, and Chief Business Development Officer of SBI Mutual Fund, expressed optimism about the future and projected further growth. Given the current pace of adding AUM, the fund house anticipates approaching the Rs 10 lakh crore mark within the next 12 to 18 months. This ambitious goal showcases the strong growth potential and market position of SBI Mutual Fund.
The achievement of crossing the Rs 8 lakh crore AUM milestone highlights the success and competitiveness of SBI Mutual Fund in the industry. As the fund house continues to expand its investor base and offer a range of investment products, it is poised to play a crucial role in the Indian mutual fund market.
Singh shared that the fund house has set an internal target to surpass the Rs 10 lakh crore AUM milestone within the next 12 to 18 months. This target is subject to market conditions and assumes the absence of any major correction in the market.
Singh also mentioned that with the current Rs 8 lakh crore AUM, SBI Mutual Fund holds approximately 18% of the overall market share. This demonstrates the significant size and influence of the fund house in the mutual fund industry.
By setting ambitious targets and consistently expanding its AUM, SBI Mutual Fund aims to strengthen its market position and continue offering valuable investment solutions to its investors.
DP Singh stated that out of the total AUM of SBI Mutual Fund, approximately Rs 5.5 lakh crore is invested in equities, while the remaining amount is allocated to debt instruments. This indicates the fund house’s significant exposure to equity investments.
Singh also mentioned that SBI Mutual Fund receives an average of Rs 2,200 crore in monthly inflows through systematic investment plans (SIPs). SIPs have become a popular investment option among investors due to their ease of entry and exit, as well as the flexibility in choosing the investment amount.
The consistent inflow of funds through SIPs reflects the trust and confidence investors have in SBI Mutual Fund and its ability to deliver long-term returns. It also indicates the growing preference for disciplined and regular investment approaches among individuals seeking to achieve their financial goals.
DP Singh highlighted that SBI Mutual Fund stands out in terms of its customer base, with 35 percent of its 17 million folios (investment accounts) coming from small towns. This is in contrast to the industry norm, where the majority of inflows are typically generated from the top 30 cities, known as B30 cities.
Singh emphasized the fund house’s extensive reach beyond urban areas, stating that their network of over 90,000 distributors covers 96 percent of the PIN codes in the country. This wide distribution network enables SBI Mutual Fund to connect with investors in smaller towns and rural areas.
He further mentioned that SBI Mutual Fund receives 20 percent of its inflows through State Bank branches, indicating the advantage of being associated with the country’s largest public sector bank. Additionally, 50 percent of inflows come through the fund house’s distributor network, while the remaining portion is sourced through other channels.
These statistics demonstrate SBI Mutual Fund’s efforts to cater to investors across various locations and the effectiveness of its distribution network in reaching out to a diverse customer base.
SBI Funds Management Pvt. Ltd. is a joint venture between the State Bank of India (SBI), India’s largest lender, and Amundi, the largest asset manager in Europe. SBI Funds Management serves as the investment manager for SBI Mutual Fund, as well as for SBI Alternative Equity Fund and SBI Alternative Debt Fund. The joint venture combines the strengths and expertise of both entities to offer a wide range of investment products and services to investors in India.
