Mutual Funds: SBI MF Surpasses Rs 10 Lakh Crore In Assets; Becomes First AMC To Hit Milestone

SBI Mutual Fund has become the first asset management company (AMC) in the country to surpass Rs 10 lakh crore in Average Asset Under Management (AAUM). As of June 3, this milestone was officially recorded, reflecting the significant growth and investor trust in the fund house.

The Association of Mutual Funds of India (AMFI), the trade body for mutual funds, released data on June 10 highlighting this landmark achievement. According to the data, the overall assets under management (AUM) of the mutual fund industry, which includes both open-ended and closed-end funds, reached Rs 58.91 lakh crore by the end of May. This was an increase from Rs 57.26 lakh crore at the end of April.

SBI Mutual Fund has seen an increase in its average assets under management (AAUM) over the past financial year, growing from Rs 7.17 lakh crore to Rs 9.14 lakh crore-a robust growth rate of 27%. This growth trend has been consistent, with the fund house achieving an approximate 26% compounded annual growth rate (CAGR) from FY19 to FY24.

The impressive AAUM growth of SBI Mutual Fund can be attributed to several factors. A significant contributor has been the increase in the Systematic Investment Plan (SIP) book, which stood at Rs 3,007 crore as of March 31, 2024. Additionally, the fund house has made substantial inroads into both the top 30 (T-30) and beyond the top 30 (B-30) geographical locations in India, as classified by the Securities and Exchange Board of India (SEBI).

Shamsher Singh, Managing Director and Chief Executive Officer of SBI Mutual Fund, commented on this achievement, stating, "In a journey spanning over 36 years, there have been many milestones for SBI Mutual Fund as we have evolved over time with a dynamic industry. We are part of a strong lineage of the State Bank of India and AMUNDI, which places on us a greater responsibility to ensure that we offer solutions that are in our investor's interests. This achievement is indeed a testament to the trust of our investors, distribution partners, and all other stakeholders."

The fund house has also seen interest from investors and distribution partners in its thematic offerings. Notably, the SBI Energy Opportunities Fund attracted Rs 6,800 crore with 1.7 lakh new investors, and the SBI Automotive Opportunities Fund garnered Rs 5,710 crore with over 1.11 lakh new investors. These thematic funds have been instrumental in driving the growth of SBI Mutual Fund's AAUM.

SBI Mutual Fund offers a range of 116 schemes across equity, debt, hybrid, and commodity categories as of the end of June. Specifically, the fund house has 44 equity schemes, 57 debt schemes, six hybrid schemes, and two commodity schemes. This extensive product portfolio has allowed SBI Mutual Fund to cater to a wide array of investor needs and preferences.

In terms of asset mix, equity assets constitute approximately 61% of SBI Mutual Fund's total AUM. Debt assets make up 22.5%, while hybrid schemes account for 15.15%. This diversified asset allocation strategy has enabled the fund house to maintain a balanced growth trajectory, appealing to both risk-averse and risk-seeking investors.

The broader mutual fund industry in India has also been on an upward trajectory. The overall AUM saw a rise from Rs 57.26 lakh crore in April to Rs 58.91 lakh crore by the end of May, reflecting growing investor confidence and participation in mutual funds.

SBI Mutual Fund's achievement of crossing the Rs 10 lakh crore mark is a significant milestone not just for the fund house but for the entire mutual fund industry in India. It sets a new benchmark and highlights the increasing role of mutual funds in the financial planning and investment strategies of Indian households.