NEW DELHI, Nov 12: The asset base of top 10 mutual funds rose sharply by 37 per cent in 2016-17 while their profits grew 21 per cent, leaving room for better operating leverage to kick in for most players.
The profit before tax (PBT) of these AMCs (asset management companies) grew by 21 per cent to Rs 4,001 crore in 2016-17, from Rs 3,309 crore in 2015-16, data with the Association of Mutual Funds in India (Amfi) showed.
Moreover, the assets under management (AUM) of the fund houses increased to Rs 14.78 lakh crore at the end of March this year, from Rs 10.76 lakh crore in March-end 2016, registering an impressive growth of 37 per cent.
Among the top players, profitability declined for Kotak Mahindra Mutual Fund (MF), IDFC MF and DSP BlackRock MF, but they witnessed robust growth ranging 16-64 per cent in their asset base.
This indicates that operating leverage is yet to kick in for most mutual fund players.
HDFC AMC emerged as the most profitable fund house in the country during the past fiscal. It reported a 13 per cent rise in its PBT at Rs 800 crore and its AUM climbed 35 per cent to Rs 2.37 lakh crore.
This is followed by ICICI Prudential MF, which posted a profit of Rs 735 crore, a jump of 47 per cent from the preceding fiscal. Its AUM went up by 38 per cent to Rs 2.43 lakh crore.
Reliance MF recorded a 19 per cent increase in its PBT at Rs 592.3 crore while the asset base rose 33 per cent to Rs 2.11 lakh crore.
Aditya Birla AMC profit grew just 5 per cent to Rs 335 crore. However, it witnessed a jump of 43 per cent in its AUM to Rs 1.95 lakh crore.
SBI MF’s PBT spurted by 31 per cent to Rs 330 crore while its AUM went up by 47 per cent to Rs 1.57 lakh crore.
Notably, DSP BlackRock MF recorded the highest growth in AUM, but showed up a negative profitability. Its asset base surged by a steep 64 per cent to Rs 64,177 crore at the end of March this year while its PBT declined 2 per cent to Rs 119.6 crore in 2016-17.
Further, Kotak Mahindra’s PBT fell by 19 per cent to Rs 58.6 crore while the asset base swelled by 58 per cent to Rs 92,216 crore.
Profit before tax of IDFC MF dropped by 14 per cent to Rs 140 crore while its AUM climbed by 16 per cent to Rs 60,636 crore. (PTI)
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