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

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 schemesInvestment by other key personnelInvestment by AMC board directors.
234 crore222 crore1205 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.
FundTotal AUM (Rs. Cr)Fund ManagerOwn Fund Manager InvestmentKey Employees (incl CEO)AMC Directors
SBI Nifty ETF38,883Raviprakash Sharma---
HDFC Balanced Advantage37,850Prashant Jain27.195.252.00
ICICI Pru Equity & Debt28,633S. Naren  / Atul Patel  / Manish Banthia14.141.0114.24
ICICI Pru Balanced Advantage28,547S. Naren /Rajat Chandak /  Manish Banthia  / Ihab Dalwai53.583.3562.46
SBI Equity Hybrid26,376Rama Srinivasan / Dinesh Ahuja0.580.070.36
HDFC Hybrid Equity22,762Chirag Setalvad-1.514.02
HDFC Equity21,754Prashant Jain33.838.148.23
Aditya Birla SL FrontLine21,380Mahesh Patil-1.5011.44
Kotak Standard Multicap21,271Harsha Upadhyaya1.864.323.26
HDFC Mid-Cap Opportunities21,149Chirag Setalvad-0.993.39
SBI Bluechip20,284Sohini Andani1.061.040.14
ICICI Pru BlueChip18,747Sankaran Naren / Rajat Chandak-1.750.52
AXIS Long Term Equity18,262Jinesh Gopani0.110.629.31
ICICI Pru Value Discovery16,659Mrinal Singh-2.000.17
HDFC Top 10015,261Prashant Jain16.931.721.41
Aditya Birla SL Equity Hybrid '9514,841Mahesh Patil  /  Pranay Sinha  / Dhaval Shah0.530.066.02
Reliance Equity Hybrid14,203Sanjay Parekh  / Amit Tripathi0.750.890.54
Motilal Multicap 3513,861Gautam Sinha Roy / Siddharth Bothra0.400.36414.55
SBI ETF Sensex12,379Raviprakash Sharma-0.01-
Franklin India Equity11,832Anand Radhakrishnan / R Jankiraman0.340.611.46
ICICI Pru Multi Asset11,284Sankaran Naren / Ihab Dalwai / Anuj Tagra31.653.3932.71
L&T Hybrid Equity10,936S. N. Lahiri / Karan Desai / Shriram Ramanathan0.330.540.06
Reliance Large Cap10,898Ashwani Kumar / Shailesh Raj Bhan0.263.550.11
Reliance Tax Saver10,083Ashwani Kumar0.040.080.03
Aditya Birla SL Equity9,749A. Shah0.070.443.64
Reliance Multi Cap            9,732Shailesh Raj Bhan                    0.28                    3.04                        -
UTI Nifty Exchange Traded            9,024Kausik Basu                        -                        -                        -
Mirae Asset India Equity            8,531Neelesh Surana  / Harshad Borawake                    2.67                    0.10                    0.21
UTI Equity            8,521Ajay Tyagi                        -                    0.30                        -
L&T India Value            8,160Venugopal Manghat / Abhijeet Dakshikar                    0.39                    0.32                    0.81
Franklin India Bluechip            8,108Anand Radhakrishnan / Roshi Jain / Srikesh Nair                    0.59                    1.24                    0.54
Franklin India Focused Equity            7,733Roshi Jain / Anand Radhakrishnan                    2.63                    0.38                    2.15
HDFC Equity Savings            7,499Vinay Kulkarni  / Krishan Daga / A0 Bamboli                        -                    0.72                    0.45
Franklin India Smaller Companies            7,295R. Janakiraman / Hari Shyamsunder/ Shrikesh Nair                    0.25                    0.91                    0.05
DSP BR Equity & Bond            7,188Atul Bhole /  Vikram Chopra                    0.35                  25.26                191.62
Reliance Small Cap            7,019Samir Rachh / Dhrumil Shah                    0.02                    3.18                    0.10
HDFC Taxsaver            6,991Vinay Kulkarni                        -                    0.12                    0.18
Reliance Growth            6,830Manish Gunwani                    1.09                    0.58                        -
Franklin India Prima            6,617R. Janakiraman / Hari Shyamsunder/ Shrikesh Nair                    0.72                    1.08                    0.13
Aditya Birla SL Tax Relief 96            6,569Ajay Garg                    0.03                        -                    0.04
UTI Hybrid Equity            6,513V Srivatsa /  Su0 Patil                    0.02                    0.17                    0.06
SBI Magnum Taxgain Scheme            6,428Raviprakash Sharma                        -                    0.01                    0.05
Aditya Birla SL Equity Advantage            6,342Satyabrata Mohanty                    2.39                    0.97                    4.15
Sundaram Mid Cap            6,138Krishnakumar S                    1.15                    0.54                    3.79
SBI Magnum Multicap            5,850Anup Upadhyay                        -                    3.11                    1.18
DSP BR Equity Opportunities            5,765Rohit Singhania / Jay Kothari                    0.16                  13.00                  48.69
Mirae Asset Emerging Bluechip            5,730Neelesh Surana                    4.40                    0.53                    0.89
IDFC Multi Cap            5,678Anoop Bhaskar                    0.09                    0.75                    0.44
DSP BR Midcap            5,676Vinit Sambre  / Resham Jain / Jay Kothari                    0.10                  12.23                  58.70
UTI Mastershare            5,531Swati Kulkarni / Sharwan Kumar                    0.34                    0.23                        -

Source: Outlook Asia Capital

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