79%: Share of total industry AUM held by the top 10 fund houses
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Over the past six years, the leading 10 fund houses have been gradually ceding ground to emerging players, despite still capturing a significant portion of mutual fund assets under management (AUM), according to an analysis of quarterly data.
In the third quarter (Q3) of 2023-24, these top fund houses managed an average AUM of approximately Rs 38.8 trillion, constituting 79 per cent of the industry’s total AUM of about Rs. 49.2 trillion. Their share has declined from the 84 per cent recorded in Q3 of 2019-2020.
Industry experts link this shift to a reduction in the proportion of debt funds within the overall AUM and the rise in the number of mutual fund houses. Notably, the larger fund houses have a larger presence in active debt funds compared to active equity funds.
Should retail investors opt for a larger or a smaller fund house? There is no definitive answer to this question because good performance can come irrespective of the size of the fund house. What they should look for is a fund with a sound track record over the long term, say, 10 years. They should also make sure the fund manager who produced that performance is still there at the helm.
First Published: Jan 05 2024 | 10:29 AM IST