By Mike Barret 
The mutual fund industry in India has seen phenomenal growth and development in the past couple of decades and today remains an integral part of the financial sector in the country. An extensive range of investment options available for fulfilling different types of investor needs has helped the industry establish its position as one of the prime movers of economic growth and wealth in the country. The present article gives an overview of what are the current trends in the mutual fund industry in India and lays emphasis on major trends, growth statistics, future projections and the role of AI.
Mutual Fund Industry – Overview in the Current Scenario
The AUM of mutual funds in India is estimated to rise from USD 0.66 trillion in 2024 to USD 1.51 trillion and to clock a CAGR of 18%-plus during the same period. This growth underpins the pivotal role to be played by the top mutual fund companies in india in the financial services sector—a diversified investment avenue for both retail and institutional investors. The rapid growth of the industry has reasonably supported its emergence as the second largest across the world in the mutual fund market, with more than 46 million households investing in mutual funds.
Top Mutual Fund Companies In India:
Here is an overview of some of the top mutual fund companies in india:
- SBI Mutual Fund
AUM: ₹ 9,15,902 Crores
Largest Schemes: SBI Nifty 50 ETF, SBI S&P BSE Sensex ETF, SBI Equity Hybrid Fund
Overview: In incorporation on June 29, 1987, the SBI Mutual Fund is the second mutual fund house in India after the Unit Trust of India. It manages a diversified portfolio that includes domestic mutual funds, Alternate Investment Funds, and offshore funds.
- ICICI Prudential Mutual Fund
AUM ₹ 7,11,553 Crores
Major Plans: ICICI Prudential Balanced Advantage Fund, ICICI Prudential Bluechip Fund, ICICI Prudential Liquid Fund
Overview: ICICI Prudential Mutual Fund came into existence in the year 1993; it is a joint venture between ICICI Bank and Prudential Plc. of the UK. It is one of the biggest and oldest AMCs in India and is known for robust fund performance along with a long list of investment options.
- HDFC Mutual Fund
AUM: ₹ 6,17,678 Crores
Biggest Schemes: HDFC Balanced Advantage Fund, HDFC Mid-Cap Opportunities Fund, HDFC Liquid Fund
About: HDFC Mutual Fund is considered one of the most favoured mutual fund investment options in India since its establishment in 1999. At present, it has a considerable asset under management that includes equity funds, debt funds, hybrid funds, and other funds.
- Aditya Birla Sun Life Mutual Fund
AUM: ₹ 3,32,579 Crores
The biggest schemes managed by Aditya Birla Sun Life Mutual Fund are in three categories: Aditya Birla Sun Life Liquid Fund, Aditya Birla Sun Life Frontline Equity Fund, Aditya Birla Sun Life Corporate Bond Fund.
Overview: A joint venture was conceived in 1994 by Aditya Birla Capital Limited and Sun Life AMC Investments, Canada, to make BSLMF a diversified fund house with attractive returns.
- Kotak Mahindra Mutual Fund
AUM: ₹3,84,007 Crores
Largest Schemes: Kotak Flexi Cap Fund, Kotak Emerging Equity Fund, Kotak Equity Arbitrage Fund
Kotak Mahindra Mutual Fund is a wholly-owned subsidiary of Kotak Mahindra Bank. It was one of the very important market players in India, heading up innovation through its product line and leading from the front with an investor-based approach.
- Nippon India Mutual Fund
AUM: ₹ 4,33,897 Crores
Largest plans: CPSE ETF, Nippon India Arbitrage Fund, Nippon India Asset Allocator FoF
Formerly known as Reliance Mutual Fund, Nippon India Mutual Fund is the largest foreign-owned mutual fund house in India.
- Axis Mutual Fund
AUM: ₹ 2,75,166 Crores
Largest schemes: Axis ELSS Tax Saver Fund, Axis Bluechip Fund, Axis Liquid Fund
Axis Mutual Fund was launched in 2009 with the sponsorship of Axis Asset Management Company Ltd by Axis Bank and Schroder Singapore Holdings Private Limited, Singapore. It is the fund that believes in applying the unconventional in all of its solutions, leading to delivering performance at the higher end of the spectrum.
- UTI Mutual Fund
AUM: ₹ 2,90,993 Crores
Largest Schemes: UTI Nifty 50 ETF, UTI S&P BSE Sensex ETF, UTI Flexi Cap
UTI Mutual Fund has remained a yardstick of solid returns and unmatchable credibility in managing a large and variable portfolio of funds.
- Bandhan Mutual Fund
AUM: ₹ 1,37,355 Crores
It has schemes like – Bandhan Banking & PSU Debt Fund, Bandhan Corporate Bond Fund, and Bandhan Liquid Fund.
Bandhan Mutual Fund is a venture that was launched after the takeover of IDFC Asset Management Company. It is one of the emerging mutual funds in India and is registering speedy growth.
- DSP Mutual Fund
AUM: ₹ 1,48,082 Crores
Biggest Schemes: DSP Midcap Fund, DSP Small Cap Fund, DSP ELSS Tax Saver Fund
DSP Mutual Fund entered asset management officially in the year 1997, but the company was formed during the 1860s. The company is famous for ensuring good performance on a given date and focusing on investors, providing products of various classes in a diversified range of schemes.
How AI Can Help in Optimal Mutual Fund Selection?
AI has already brought major transformation in the mutual funds industry on issues regarding the selection and management of portfolios.
Improved Performance Prediction
The AI tools make use of enormous historical data and real-time data for possible predictions of the future trends of the market and the performance of the data.
Risk Management
AI-based algorithms can be used to monitor associated risk factors more rigorously, hence providing full insight into potential market volatilities and allowing timely adjustments of portfolios.
Personalized Investment Solutions
AI-powered platforms utilise individual investor profiles, their goals, and their tolerance to risk in proposing personalised investment advice.
Conclusion
As the mutual fund industry continues to evolve, technological advancements are becoming increasingly important. Platforms like Wright Research are at the forefront of this change, utilising advanced algorithms and AI-driven performance and risk forecasting to help investors select an optimal mix of mutual funds. These tools provide personalised investment strategies that align with individual risk profiles and financial objectives, ensuring that investors can make informed decisions in an increasingly complex market.
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