MUMBAI: With nearly two-thirds of the year gone, it is safe to say that Calendar 2021 has been kind to the mutual fund industry. The broad rally in the Indian stock market has seen 19 out of the 37 equity mutual funds comfortably beat the broadest Nifty500 index in the year so far.
Data collated by Prime Database and ETMarkets.com for the seven-month period ended July threw up some fascinating insights on what has been shaping up the mutual fund space in the country.
Let’s start with the best performers. In line with the trend seen in the stock market, the small guy won big in the mutual fund industry. The best performing equity schemes of the year so far have been from the second-rung players like Quant Mutual Fund, PGIM India Mutual Fund and ITI Mutual Fund, whose equity assets under management have swelled 703 per cent, 198 per cent and 129 per cent, respectively.
No mutual fund has been as aggressive in the market as Aditya Birla Sun Life MF. The fourth largest fund house in the country by managed assets added 84 stocks to its equity schemes in the seven-month period ended July. However, the aggressiveness has so far not borne the intended fruit for the fund house as its equity assets under management has risen merely 20 per cent in 2021, lower than the 22 per cent gains that the Nifty500 index has recorded.
The second most aggressive MF during the year has been Quant Mutual Fund, with 57 new stock additions to its equity schemes, which have helped its equity AUM surge to Rs 2,653 crore at the end of July from Rs 330.7 crore in December, 2020.
In the battle for market share, Nilesh Shah-led Kotak Mutual Fund has managed to trump all comers by dominating the table for market share gains in equity schemes so far in Calendar 2021. The country’s sixth largest mutual fund has improved its market share by 46 basis points to 6.38 per cent since the beginning of the year.
The fund house has been savvy in its purchases during the year and has managed to beat the Nifty500 index with 34 per cent gains in 2021 so far, helped by the addition of 39 new stocks in its equity schemes.
The biggest loser in terms market share has been HDFC Mutual Fund, headed by the heavyweight duo of Navneet Munot and Prashant Jain. Not only did HDFC MF lose its second place in the AUM table to ICICI Prudential MF, but the asset manager has also seen its market share in equity schemes AUM slump 83 basis points to 10.10 per cent.
The decline in HDFC MF’s market share in equity AUM has not been because of lack of effort, as the fund house has added 22 new stocks to its portfolio so far during the year. Yet, HDFC MF’s equity AUM has risen only 15 per cent in 2021 so far, much below the gains seen in the Nifty500 index.
Following HDFC MF are SBI Mutual Fund and Franklin Templeton MF, which have lost 42 and 45 basis points of equity AUM shares, respectively.