New Delhi: In a first of its kind disclosure in the Indian MF space, all fund houses have begun disclosing investments of group companies in their AUMs (assets under management) and Birla Sun Life MF tops the list with Rs 6,585 crore from its related entities.
While Reliance MF became the first fund house to make such disclosures voluntarily earlier this year, it was followed by Religare MF. However, regulator Sebi has now made it mandatory for fund houses to make such disclosures with effect from AUM for the month of March.
According to disclosures made by various fund houses, Birla Sun Life MF tops the list for investments by group companies in absolute terms, followed by SBI MF (Rs 5,218 crore), ICICI Prudential MF (Rs 4,971 crore), HDFC MF (Rs 4,032 crore and Reliance MF (Rs 3,650 crore).
In terms of highest AUM contribution from group distributors, SBI MF tops the list with Rs 10,136 crore, followed by HDFC MF (Rs 7,766 crore), Axis MF (Rs 6,116 crore), ICICI Prudential (Rs 5,802 crore) and Birla Sun Life (Rs 5,012 crore).
Reliance MF, which is the country's third largest fund house after HDFC MF and ICICI Pru, has AUM contribution of only Rs 547 crore (0.5%) from its group distributors.
These disclosures are for the month of March, during which the AUM of mutual fund industry normally shrinks by about 20% in the last 15 days due to redemption by corporate and bank investors.
Such disclosures would be now made every month by all 44 fund houses operating in the country.
The fund houses have disclosed the exact amount of investments by their group companies in their respective schemes following a Sebi's direction.
As per Sebi's direction, MFs are required to make monthly disclosure of AUM from different categories of schemes, AUM from places beyond top-15 cities, contribution of sponsor and its associates in AUM and contribution from different types of investors (retail, corporate etc).
The fund houses also need to make disclosures about state-wise contribution and AUM from sponsor group or non-sponsor group distributors on their websites and share the same with AMFI within seven working days from end of the month. These rules came into effect from this month.
The norms were recently framed by the market regulator as part of its first-ever long term policy for the mutual fund industry.
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