Moneycontrol
Last Updated : Aug 27, 2018 11:00 AM IST | Source: Moneycontrol.com

How much do mutual fund managers invest in their own schemes?

Fund managers should eat their own cooking.

Manoj Nagpal @moneycontrolcom

Ever since SEBI mandated mutual fund houses to disclose how much fund managers, directors of the asset management company and other key employees invest their own money into their schemes, the data has become an important parameter to rate overall stewardship of funds.

For, this gives us a clear picture on whether they have "skin in the game" -- or whether they put their money where their mouth is.

Here's the latest analysis of the Indian mutual fund industry, which shows if your fund manager is investing in the same schemes along with you.

The data analysed was for the largest 100 equity and hybrid mutual funds which comprise of total assets of Rs. 7,91,481 crore as of July 31st, 2018. The data was collated and analysed by Outlook Asia Capital.

At a glance, below is the sum total of investments (in rupees).
Total investment by fund managers in own schemes Investment by other key personnel Investment by AMC board directors.
234 crore 222 crore 1205 crore

While several fund managers and CEOs talk about passive investing and ETFs, they hardly invest in their companies' index funds and ETFs.

Most of fund managers' investments are in their active funds -- encouragingly demonstrating that they believe these funds will be able to generate alpha, or excess returns over the benchmark.

The mutual fund scheme that has the largest investment by its fund managers is ICICI Prudential Balanced Advantage Fund, with an investment value of Rs 53.58 crore.

The scheme that has the largest investment by its key employees is HDFC Infrastructure Fund: Rs 30.57 crore. While it is not explicitly stated, this investment in HDFC Infrastructure Fund could largely be from HDFC AMC CIO Prashant Jain.

The mutual fund scheme, which has the largest investment by the AMC board directors is Motilal Multicap 35 Fund, with an investment value of Rs 414.55 crore.

Prashant Jain has a total investment value of Rs 77.95 crore (excluding any investment in HDFC Infrastructure Fund), which is predominantly put in equity schemes.

ICICI Prudential's S Naren, along with his co-fund managers, has an investment of approximately Rs 102 crore in hybrid asset allocation schemes. Clearly, managers of both these fund houses eat their own cooking.

There are a total of 32 schemes out of the top 100, in which fund managers have no investments of their own, and another 18, where the investment is less than Rs 10 lakh. Thus almost 50 percent of these schemes have negligible investment by their own fund managers

Here's the list of the 50 largest funds and the total investments in them by the fund manager, key employees and AMC Directors.
Fund Total AUM (Rs. Cr) Fund Manager Own Fund Manager Investment Key Employees (incl CEO) AMC Directors
SBI Nifty ETF 38,883 Raviprakash Sharma - - -
HDFC Balanced Advantage 37,850 Prashant Jain 27.19 5.25 2.00
ICICI Pru Equity & Debt 28,633 S. Naren  / Atul Patel  / Manish Banthia 14.14 1.01 14.24
ICICI Pru Balanced Advantage 28,547 S. Naren /Rajat Chandak /  Manish Banthia  / Ihab Dalwai 53.58 3.35 62.46
SBI Equity Hybrid 26,376 Rama Srinivasan / Dinesh Ahuja 0.58 0.07 0.36
HDFC Hybrid Equity 22,762 Chirag Setalvad - 1.51 4.02
HDFC Equity 21,754 Prashant Jain 33.83 8.14 8.23
Aditya Birla SL FrontLine 21,380 Mahesh Patil - 1.50 11.44
Kotak Standard Multicap 21,271 Harsha Upadhyaya 1.86 4.32 3.26
HDFC Mid-Cap Opportunities 21,149 Chirag Setalvad - 0.99 3.39
SBI Bluechip 20,284 Sohini Andani 1.06 1.04 0.14
ICICI Pru BlueChip 18,747 Sankaran Naren / Rajat Chandak - 1.75 0.52
AXIS Long Term Equity 18,262 Jinesh Gopani 0.11 0.62 9.31
ICICI Pru Value Discovery 16,659 Mrinal Singh - 2.00 0.17
HDFC Top 100 15,261 Prashant Jain 16.93 1.72 1.41
Aditya Birla SL Equity Hybrid '95 14,841 Mahesh Patil  /  Pranay Sinha  / Dhaval Shah 0.53 0.06 6.02
Reliance Equity Hybrid 14,203 Sanjay Parekh  / Amit Tripathi 0.75 0.89 0.54
Motilal Multicap 35 13,861 Gautam Sinha Roy / Siddharth Bothra 0.40 0.36 414.55
SBI ETF Sensex 12,379 Raviprakash Sharma - 0.01 -
Franklin India Equity 11,832 Anand Radhakrishnan / R Jankiraman 0.34 0.61 1.46
ICICI Pru Multi Asset 11,284 Sankaran Naren / Ihab Dalwai / Anuj Tagra 31.65 3.39 32.71
L&T Hybrid Equity 10,936 S. N. Lahiri / Karan Desai / Shriram Ramanathan 0.33 0.54 0.06
Reliance Large Cap 10,898 Ashwani Kumar / Shailesh Raj Bhan 0.26 3.55 0.11
Reliance Tax Saver 10,083 Ashwani Kumar 0.04 0.08 0.03
Aditya Birla SL Equity 9,749 A. Shah 0.07 0.44 3.64
Reliance Multi Cap             9,732 Shailesh Raj Bhan                     0.28                     3.04                         -
UTI Nifty Exchange Traded             9,024 Kausik Basu                         -                         -                         -
Mirae Asset India Equity             8,531 Neelesh Surana  / Harshad Borawake                     2.67                     0.10                     0.21
UTI Equity             8,521 Ajay Tyagi                         -                     0.30                         -
L&T India Value             8,160 Venugopal Manghat / Abhijeet Dakshikar                     0.39                     0.32                     0.81
Franklin India Bluechip             8,108 Anand Radhakrishnan / Roshi Jain / Srikesh Nair                     0.59                     1.24                     0.54
Franklin India Focused Equity             7,733 Roshi Jain / Anand Radhakrishnan                     2.63                     0.38                     2.15
HDFC Equity Savings             7,499 Vinay Kulkarni  / Krishan Daga / A0 Bamboli                         -                     0.72                     0.45
Franklin India Smaller Companies             7,295 R. Janakiraman / Hari Shyamsunder/ Shrikesh Nair                     0.25                     0.91                     0.05
DSP BR Equity & Bond             7,188 Atul Bhole /  Vikram Chopra                     0.35                   25.26                 191.62
Reliance Small Cap             7,019 Samir Rachh / Dhrumil Shah                     0.02                     3.18                     0.10
HDFC Taxsaver             6,991 Vinay Kulkarni                         -                     0.12                     0.18
Reliance Growth             6,830 Manish Gunwani                     1.09                     0.58                         -
Franklin India Prima             6,617 R. Janakiraman / Hari Shyamsunder/ Shrikesh Nair                     0.72                     1.08                     0.13
Aditya Birla SL Tax Relief 96             6,569 Ajay Garg                     0.03                         -                     0.04
UTI Hybrid Equity             6,513 V Srivatsa /  Su0 Patil                     0.02                     0.17                     0.06
SBI Magnum Taxgain Scheme             6,428 Raviprakash Sharma                         -                     0.01                     0.05
Aditya Birla SL Equity Advantage             6,342 Satyabrata Mohanty                     2.39                     0.97                     4.15
Sundaram Mid Cap             6,138 Krishnakumar S                     1.15                     0.54                     3.79
SBI Magnum Multicap             5,850 Anup Upadhyay                         -                     3.11                     1.18
DSP BR Equity Opportunities             5,765 Rohit Singhania / Jay Kothari                     0.16                   13.00                   48.69
Mirae Asset Emerging Bluechip             5,730 Neelesh Surana                     4.40                     0.53                     0.89
IDFC Multi Cap             5,678 Anoop Bhaskar                     0.09                     0.75                     0.44
DSP BR Midcap             5,676 Vinit Sambre  / Resham Jain / Jay Kothari                     0.10                   12.23                   58.70
UTI Mastershare             5,531 Swati Kulkarni / Sharwan Kumar                     0.34                     0.23                         -

Source: Outlook Asia Capital

(Manoj Nagpal is Consulting Editor with Moneycontrol.)
First Published on Aug 27, 2018 11:00 am
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