India’s Leading BFSI and FinTech Companies 2023

India’s Leading BFSI and FinTech Companies 2023 | 63 [ INDIAN ASSET MANAGEMENT INDUSTRY OVERVIEW ] Indianmutual fund industry entails more than 40AMCs encompassing of private sector companies, joint ventures with foreign entities and NBFC / bank sponsored AMCs. The Indian mutual fund industry remains consolidated with top 10 AMCs controlling ~81% share of INR 36.8 trillion assets. INDUSTRY QUARTER AVERAGE AUM: STRONG GROWTH OF 25.8% IN FY22 In FY22, the quarter average AUM (QAAUM) witnessed a growth 25.8% to reach INR 36.8 trillion, at record high levels. The total folios grew by 32% driven by increasing awareness and higher retail participation. The Indian MF Industry QAAUM grew at 14.4% CAGR during FY18 to FY22. The Indian asset investment market managed to close on an encouraging note in FY22 despite the lingering effect of pandemic. In FY22, the industry saw an increase Industry QAAUM Trends ( ` trillion) Source: AMFI QAAUM in retail participation in capital markets, added record demat accounts as well as recorded fund mobilization through NFO route. In today’s dynamic environment, AMCs are adapt ing wi th the changing customer preferences by of fer i ng more cus tomer focussed products. Whi le the asset management industry is undergoing transformat ional changes , i t has compe l l ed c omp a n i e s t o r e i ma g i n e investments for clients. In the past decade, the Indian mutual fund industry growth wa s d r i ven by change s i n demographics, macroeconomic conditions, investor behaviour, amongst others. Mutual funds have responded to these changes by diversifying into new areas such as infrastructure and private equity. QUARTER AVERAGE AMC BREAK-DOWN BY ASSET TYPE: EQUITY AND ETF ASSET CLASSES HAVE GAINED MARKET SHARE IN FY22 Equity: In terms of asset segments, equity AUM accounts for almost half of total assets managed by Indian Mutual Fund Industry. The improved market share was primarily on account of increasing awareness, financial ization of sav ings , s t rong SIP inf lows , amongst others. Also, increased stock prices contributed to rise in total share of equity assets. In terms of total asset managed, equity AUM grew by 46.7% in FY22 to reach INR 18 trillion Debt: Debt asset classes share declined from 34% in FY21 to 27% in FY22. Single digit returns have led to investors to redeem their debt investments in favour of other investments, primarily equity and ETFs. Dun & Bradstreet