AMC AUM race: Who’s zooming ahead and who’s falling behind?

There is a widespread belief that the Asset Management Company (AMC) business in India is on the brink of a significant upswing. To provide a clearer perspective on this, we have conducted a comprehensive analysis based on the AUM data released for December 2023. Our analysis includes a comparative study on a year-on-year basis.

While it’s true that some AMCs have reportedly doubled their AUM, it’s crucial to consider the base effect. To ensure an accurate comparison, we have meticulously analysed the data to present a fair and unbiased view. The comparison is segmented, with AMCs having AUM less than Rs 10,000 crore evaluated separately from those exceeding Rs 2,00,000 crore.

AMCs with less than Rs 10,000 crore AUM as of December 2023

AUM in Rs crores

Big Movers and Shakers: AMCs With Explosive Growth

• WhiteOak Capital Asset Management Limited takes the crown for the most impressive AUM growth, boasting a whopping 281% increase year-on-year. This translates to a jump from Rs 1,654.93 crore in December 2022 to a staggering Rs 6,310.75 crore in December 2023.
• Navi AMC Limited isn’t far behind, with a remarkable 89.95% growth in its AUM, rising from Rs 2,183.99 crore to Rs 4,148.54 crore.
• Samco Asset Management Pvt Ltd also saw significant growth, with its AUM increasing by 87.17% from Rs 734.93 crore to Rs 1,375.55 crore.

Steady Growth: AMC Maintaining Momentum

• NJ Asset Management Private Limited witnessed a more moderate but still healthy growth of 2.64%, taking its AUM from Rs 4,769.83 crore to Rs 4,895.65 crore.
• Trust Asset Management Private Limited also recorded modest growth of 8.51%, with its AUM rising from Rs 1,096.77 crore to Rs 1,190.15 crore.

AMCs Experiencing Negative Growth

• UTI Mutual Fund stands out as the only AMC in the table to experience negative growth, with its AUM shrinking by 13.80% from Rs 25.78 crore to Rs 22.22 crore.
• Indiabulls Asset Management Company Ltd. also saw a decline in its AUM, albeit smaller at 19.30%, falling from Rs 593.02 crore to Rs 478.56 crore.

AMCs With More Than Rs 2,00,000 Crore AUM as Of December 2023

Giants On The Go: Industry Leaders With Strong Growth

• HDFC Asset Management Company Limited emerges as the champion of growth, boasting an impressive 23.88% increase in its AUM year-on-year. This translates to a jump from Rs 4,39,258.03 crore in December 2022 to a staggering Rs 5,44,156.33 crore in December 2023.
• Kotak Mahindra Asset Management Co Ltd follows closely behind with a remarkable 24.15% growth, rising from Rs 2,80,614.61 crore to Rs 3,48,383.00 crore.
• ICICI Prudential Asset Management Company Limited also achieved significant growth, with its AUM increasing by 22.74% from Rs 5,05,105.22 crore to Rs 6,19,990.51 crore.

Steady and Strong: AMCs Maintaining Momentum

• SBI Funds Management Ltd being the market leader witnessed a healthy growth of 18.31%, taking its AUM from Rs 7,13,527.81 crore to Rs 8,44,207.38 crore.
• Nippon Life India Asset Management Ltd also recorded decent growth of 19.70%, with its AUM rising from Rs 2,94,811.25 crore to Rs 3,52,902.83 crore.

Cause for Concern: AMCs Lagging Behind Industry Growth

• Aditya Birla Sun Life AMC Ltd stands out for its lower growth of 9.38%, compared to the industry average of 14%. Despite this, it still managed to increase its AUM from Rs 2,82,049.78 crore to Rs 3,08,504.66 crore.
• Axis Asset Management Company Limited also saw a slower growth of 5.65%, with its AUM rising from Rs 2,48,870.48 crore to Rs 2,62,935.08 crore.
• UTI Asset Management Company Ltd recorded growth close to industry average, among the listed AMCs, at 13.21%. Its AUM increased from Rs 2,36,169.91 crore to Rs 2,67,360.14 crore.

What Does This Mean For Investors?

The data highlights that even established players in the AMC industry are experiencing varying growth rates. While some AMCs are surging ahead, others are lagging behind the industry average. This underscores the importance for investors to consider not just the size of an AMC, but also its recent performance and growth trajectory.

There are many other factors to consider when evaluating an AMC, such as its investment philosophy, fund performance, and fees. Investors should always conduct their own due diligence before investing in any AMC.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.