SBI MF assets top Rs 10 trn; becomes first fund house to achieve milestone

SBI Mutual Fund Becomes First in India to Achieve Rs 10 Trillion AUM Milestone.

Expert Analysis:

• Milestone Achievement: SBI Mutual Fund (SBI MF) has become the first fund house in the country to achieve Rs 10 trillion in assets under management (AUM).

• Growth Drivers: This milestone was driven by the post-pandemic equity boom and increased awareness of mutual fund investing.

• AUM Composition (April 2024):

  • As of April 2024, SBI's contribution to the AUM was Rs 2 trillion.

  • Rs 5 trillion of the AUM is in direct plans, while Rs 2.2 trillion linked to other distributors.

  • Institutional investors held nearly Rs 5 trillion of the total AUM, with a substantial portion belonging to the Employees’ Provident Fund Organisation.

• AUM Growth and Market Trends:

  • The average AUM was Rs 3.7 trillion in March 2020, when SBI MF first claimed the top spot in the AUM ranking.

  • SBI MF's AUM growth has consistently outpaced the industry average for three of the past four financial years.

  • The mutual fund industry's AUM surged 2.6x to Rs 57 trillion, and the Nifty 50 index rising 2.6x between March 2020 and April 2024.

• AUM Breakdown:

  • Passive and international funds constitute largest share 36% of SBI MF's total AUM.

  • Active equity schemes account for 29% of the total AUM.

  • Active debt schemes hold an 18% share of the total AUM.