Before investing in any mutual fund, investors should carefully consider the fund house’s name’s popularity. The value of the fund house, its reputation, the expertise of fund managers and the past performances of its funds are some of the essential factors to check before investing.
However, these are only some factors, and a reputable fund house does not guarantee high returns. This blog provides some essential details of the 15 best mutual fund houses.
What Is a Mutual Fund House?
Mutual fund houses are also called Asset Management Companies (AMCs). These organisations pool money from investors who share common investment objectives and then invest the accumulated funds into various financial instruments. AMCs employ fund managers responsible for assessing the market condition and formulating strategies for allocating funds.
A fund house will offer several mutual fund schemes for investors. These schemes aim to generate a certain level of returns while keeping the risk levels as low as possible. Fund managers make all decisions about when and where to invest based on a scheme’s declared goals.
How Do Mutual Fund Houses Function?
Fund houses or AMCs take full responsibility for managing mutual funds offered by them. They follow the steps below for effective fund management:
- Allocation of assets.
Every mutual fund has a definite investment objective for which the fund manager must determine suitable financial instruments and strategies. For instance, large-cap funds are equity funds that invest in companies with large market capitalisation.
- Research and analysis
Mutual fund houses generally have researchers and analysts responsible for assessing the market situation. The fund managers consider their analytical reports before formulating investment-related decisions.
- Construction of portfolio
The researchers report their findings on the latest market trends to the fund managers who use the data to choose securities for mutual funds. This is how portfolio construction takes place.
- Performance review
Securities Exchange Board of India (SEBI) has mandated that mutual fund houses provide regular information to investors regarding their investments.
Also Read: Using Section 80TTA to Claim Tax Deduction on Interest
List of Best Mutual Fund Houses in India
The table below has listed the top 15 mutual fund houses in India (as of data from October 12 2022):
|AMC||AUM (Asset Under Management) in Crores||Total Number of Schemes|
|SBI Mutual Fund||6,48,640.63||139|
|ICICI Prudential Mutual Fund||4,84,872.55||109|
|HDFC Mutual Fund||4,18,852.29||55|
|Kotak Mahindra Mutual Fund||2,83,896.78||52|
|Aditya Birla Sun Life Mutual Fund||2,82,183.36||99|
|Nippon India Mutual Fund||2,81,439.53||96|
|Axis Mutual Fund||2,46,126.55||59|
|UTI Mutual Fund||2,24,279.12||69|
|IDFC Mutual Fund||1,17,110.41||42|
|DSP Mutual Fund||1,06,681.94||47|
|Mirae Asset Mutual Fund||1,02,383.71||37|
|Edelweiss Mutual House||93,687.49||45|
|Tata Mutual Fund||88,392.19||50|
|L&T Mutual House||71,570.51||30|
|Franklin Templeton Mutual Fund||60,016.66||47|
Detailed Analysis of the Top Fund Houses
Discussed below are the details of the best mutual fund houses in India:
- SBI Mutual Fund
SBI Mutual Fund Trustee Company Private Limited was set up on June 29, 1987. This trust controls the SBI Mutual Fund, one of India’s largest and oldest fund houses. It was a joint venture between the State Bank of India and Amundi, a French asset management company.
This mutual fund house was the first to offer a contra fund in India. In addition, it was the first AMC to launch an Environment, Social, and Governance (ESG) fund, which provides the opportunity for sustainable investment in significant markets. In 2013, SBI Mutual Fund acquired Daiwa Mutual Fund, an integral part of Japan’s Daiwa Group.
- ICICI Prudential Mutual Fund
This mutual fund house was set up in 1993 and is one of India’s largest AMCs. The AMC offers a range of schemes for every socioeconomic bracket in India. Most of the schemes that this AMC offers come with a rating of ‘CRISIL AAAmfs,’ which indicates a high degree of safety concerning timely receipts of payments from the investments that people had made.
The AMC is set up as a partnership between ICICI Bank and Prudential Plc, one of the largest financial service providers in the UK. ICICI Bank holds a 51% stake in the firm, while Prudential Plc has a 49% stake.
- HDFC Mutual Fund
This fund house was established in 1999 as a partnership between HDFC Limited and Abrdn Investment Management Limited (AIML). This AMC holds an important position in terms of equity investments, as it holds nearly 11% of the industry AUM. As of March 31 2022, HDFC Mutual Fund had a retail and institutional customer base of 9.9 million.
HDFC AMC is one of the country’s most profitable AMCs. Its systematic transactions, good management, well-connected distribution network, and simple investment products have made it a reputable AMC.
- Kotak Mahindra Mutual Fund
This fund house began its operations in 1998. Kotak Mahindra Asset Management Company Limited is registered under the Companies Act of 1956 and manages the Kotak Mahindra Mutual Fund. This was the first mutual fund house in India that offered a dedicated gilt fund to invest only in government securities.
Many of the mutual funds Kotak Mahindra AMC offers are debt funds. Primarily, this fund house invests in companies with AAA and AA ratings and offers schemes for investors with varying risk appetites.
- Aditya Birla Sun Life Mutual Fund
Aditya Birla Capital Limited and Sun Life AMC, a financial services company based in Canada, jointly set up Aditya Birla Sun Life Mutual Funds (ABSLMF) in 1994. This mutual fund house began operating with the initial aim of increasing mutual fund market penetration in India.
Some of the financial products and services of ABSLMF are sector-specific equity options, fund-of-fund schemes, hybrid income funds, and treasury and debt products. In addition, this fund house focuses on making the entire mutual fund management process easy and transparent for both channel partners and investors.
- Nippon India Mutual Fund
Nippon India Mutual Fund was a joint venture between Reliance Capital of India and Nippon Life Insurance Company of Japan. Previously the name of this AMC was Reliance Mutual Fund. However, in 2019, Nippon bought Reliance’s stake, and as a result, the name of the fund house was changed from Reliance Mutual Fund to Nippon India Mutual Fund.
Some of the schemes that these AMC offers are debt funds, equity funds, hybrid funds, and commodity funds. It holds 7.24% of the entire industry AUM. Furthermore, Nippon India Mutual Fund has a presence in nearly 272 places all over India, leading to its popularity.
- Axis Mutual Fund
Axis Asset Management Company Limited, which is commonly referred to as Axis Mutual Fund, was set up in 2009. It was a joint venture of Axis Bank, one of India’s largest private banks, and Schroder Singapore Holdings Private Limited (SSHPL). To build long-term relationships with clients, this fund house offers assistance in regional languages.
This fund house boasts a presence across 19 nations in Europe, the Middle East, Asia, and America. As of May 31 2022, it offered 68 schemes. Some mutual funds offered are Axis Small Cap Fund, Axis Focused 25 Fund, and Axis Flexi Cap Fund.
- UTI Mutual Fund
UTI Mutual Fund is backed by four of the largest financial institutions in India—State Bank of India (SBI), Punjab National Bank (PNB), Life Insurance Corporation (LIC), and Bank of Baroda. This fund house was set up in 2003 and offers a wide range of investment options, such as domestic mutual funds, retirement solutions, alternative investment funds, and venture funds.
UTI Mutual Fund was the first fund house in India to launch an offshore fund for Non-Resident Indians (NRIs) and People of Indian Origins (PIOs). Another achievement of this AMC is that it has been able to reach out to many rural and semi-urban areas of the country.
- IDFC Mutual Fund
This fund house was set up in 2000 with the financial backing of the Government of India (GoI). Initially, the IDFC Mutual Fund was owned by GoI, American International Group (AIG), the Government of Singapore, International Finance Corporation, JP Morgan, Morgan Stanley, Citi Group, and Goldman Sachs.
Some of the popular mutual funds of IDFC AMC are IDFC Banking & PSU Debt Fund, IDFC Tax Advantage (ELSS) Fund, IDFC Hybrid Equity Fund, and IDFC Balanced Advantage Fund. This fund house has its national headquarters in Mumbai. It also has several regional centres in the central and eastern parts of the country. IDFC Mutual Fund is acquired by a consortium led by Bandhan Financial Holdings Limited (BFHL), ChrysCapital and GIC.
- DSP Mutual Fund
DSP Mutual Fund was registered under SEBI in 1997, and it remains one of the best mutual fund houses. The DSP family has a long association with investment which started in the 1860s when the group entered the stock-broking business.
Currently, 54% of equity of the company is held by DSP ADIKO Holdings Private Limited, DSP HMK Holdings Pvt Ltd holds 34%, and Ms Aditi Kothari Desai and Ms Shuchi Kothari hold the rest. Some of the popular mutual funds offered by DSP are DSP Small Cap Fund, DSP Tax Saver Fund, DSP Flexi Cap Fund, and DSP Equity Opportunities Fund.
- Mirae Asset Mutual Fund
This fund house boasts a presence in 14 countries across 5 continents, including the United States of America (USA), Europe, and Asia, and was set up in 2007. Earlier, Mirae Asset Global Investments (India) Private Limited directly owned this fund house. However, later it transferred its business entirely to its subsidiary Mirae Asset Investment Managers (India) Private Limited or Mirae AMC.
The fund house maintained a monthly SIP book of Rs. 859 crore as of June 2022. Its most popular schemes include Mirae Asset Great Consumer Fund, Mirae Asset Large Cap Fund, and Mirae Asset Focused Fund.
- Edelweiss Mutual Fund
Edelweiss Asset Management Limited was set up in 2008 and is one of the youngest fund houses operating in the country. It offers a broad range of investment products and supports to maximise wealth creation. In May 2022, this fund house held 2.46% of the entire industry’s AUM.
Some of the mutual funds offered by this fund house are Edelweiss Mid Cap Fund, Edelweiss Large Cap Fund, and Edelweiss Long Term Equity Fund.
- Tata Mutual Fund
Tata Mutual Fund was set up in 1994 and offers a wide range of services to investors, such as fund management and financial planning. The AMC’s schemes cater to investors of varying risk appetites, income, and economic objectives. As of May 2022, this AMC held 2.26% of the industry’s AUM.
Some popular schemes offered by this fund house are Tata Digital India Fund, Tata Resources and Energy Fund, and Tata Midcap Growth Fund.
- L&T Mutual Fund
L&T Investment Management Limited is the official name of the AMC managing L&T Mutual Fund. It aims to ensure a strong monitoring and risk management process and offers various schemes spread across equity, fixed income, and hybrid categories.
Some of the schemes this AMC offers are the L&T Arbitrage Opportunities Fund, L&T Infrastructure Fund, and L&T Focused Equity Fund. HSBC mutual fund has acquired L&T mutual fund in 2021.
- Franklin Templeton Mutual Fund
Franklin Templeton is a USA-based financial services company that started operating in India in 1996 under Templeton Asset Management India Private Limited. It offers various types of schemes, including equity, multi-asset, fixed-income funds, and other alternatives. As of May 2022, the company held 1.6% of the entire industry’s AUM.
This fund house boasts a presence in nearly 34 countries. Some of the mutual funds it offers in India are Franklin Build India Direct Fund, Franklin India Flexi Cap Fund, and Franklin India Equity Hybrid Fund.
Also Read: Best Large Cap Mutual Fund to Invest in 2022
The number of mutual fund investors continues to grow in India as more people become aware of it. Investors looking for the best mutual funds should check several parameters, such as the AUM and past returns of the fund house. In the above sections, we have listed the best mutual fund houses in India based on their popularity and market share.
Frequently Asked Questions
What is the sale and repurchase/redemption price?
The sales price of a mutual fund is its Net Asset Value (NAV), at which a unitholder buys units from an open-ended scheme. Redemption/repurchase price is the price or NAV at which the fund house will repurchase its units.
Can a mutual fund change the asset allocation while allocating funds to investors?
Keeping in mind the interest of investors, fund managers make changes in asset allocation depending on the market trend. However, suppose a mutual fund wishes to change asset allocation permanently. In that case, they need to inform their investors and provide them with the option of exiting the scheme at the prevailing rate without paying any exit load.
What will happen to the investors’ money if a scheme winds up?
If a scheme winds up, the schemes provide a refund to the investors whose names are there in the Unit Holders’ Register. Please note that the investors will receive the value of their units at the prevailing NAV after adjusting all necessary expenses.
Animesh Gupta is a Chartered Accountant by profession and a NISM certified Mutual Fund Expert. He has over 4+ years of experience working in the Financial Services Industry. In his role at Wintwealth, he is part of the Credit and Risk team and evaluates the risk of the bonds available on Wintwealth's platform.