Sumary of AUM growth so far may put a shine on fund houses’ earnings:
- India’s equity indices have defied the pandemic, making retail investors grab stocks with both hands.
- The major beneficiaries have been fund houses whose assets under management (AUM) have grown.
- Within that, equity mutual funds reported a faster 5.4% increase in AUM. This includes equity-linked savings schemes that give tax benefits, and index funds.
- Fund houses make money through distribution of mutual fund schemes that enable individuals to make both large- and byte-sized investments in the capital markets.
- View Full ImageGoing with the flow In the wake of the pandemic, growth has not been a problem and profitability, thus, has more than met investors’ expectations.
- Moreover, net fund offers have grown sharply and fund managers have been able to attract more retail customers.
- This buttresses the retail participation in markets through fund houses.
- No wonder, shares of listed fund houses such as HDFC Asset Management Company Ltd, Nippon Life Asset Management Company Ltd and UTI Asset Management Company Ltd have shown big gains since the pandemic.