Average assets under management (AUM) for the 44-player mutual fund industry rose 4.16 percent, or Rs 1.02 lakh crore quarter-on-quarter, to Rs 25.49 lakh crore in Q1 (April-June) FY20, data from the Association of Mutual Funds in India (AMFI) shows.
In comparison, total AUM for the industry during January-March stood at Rs 24.48 lakh crore. In FY19, average AUM rose 6.12 percent year-on-year.
Despite a slew of defaults and downgrades that spelt trouble for the mutual fund industry, it managed to grow at a healthy pace. However, fund houses that have exposures to the beleaguered companies saw a fall in average AUM last quarter.
Fund managers said overall participation from retail investors was 'strong', given the volatility in the market. Also, continuous flows from systematic investment plans (SIPs) helped the industry to register robust AUM growth.
Asset managers said joint investor awareness campaigns by AMFI and fund houses have driven industry growth.
Among the top 10 asset management companies by AUM, HDFC MF, ICICI Prudential MF, and SBI MF continued to remain the top three fund houses.
HDFC MF, with a 5.92 percent rise in assets, continued to remain the top fund house with an AUM of Rs 3.62 lakh crore.
ICICI Prudential MF stood second with average assets rising 5.14 percent QoQ, followed by SBI MF (8.36 percent) and Aditya Birla Sun Life MF (3.04 percent).
Of the top 10 fund houses, only two MFs registered a drop in average AUM: Reliance and UTI. This is the second consecutive quarter where Reliance MF posted a drop in AUM.
With a fall of 4.73 percent, or by Rs 11,041 crore, the AUM of Reliance MF fell to Rs 2.22 lakh crore. However, the fund house retained its fifth position.
Despite a 1.14 percent fall in the average AUM, UTI MF retained the seventh spot.
Among the notable trends in terms of AUM growth was PPFAS MF that saw 17 percent growth and Quant MF which witnessed a 10 percent AUM rise during Q1 FY20.
JM Financial MF, IDBI MF, DHFL Pramerica MF, BOI AXA MF, Yes MF and Essel MF were among the fund houses that registered a sharp decline in their average AUM.
Of the 44 fund houses, as many as 26 MFs grew their asset base in the April-June quarter, while the rest saw a decline in their AUMs.