Bank based AMCs gain market share in debt funds from Mar 2018-Sep 2020

Bank and financial institution backed fund houses have gained market share in the fixed income space, showing both retail as well as institutional investors are more comfortable with them in the fixed income space. SBI, HDFC, ICICI, Axis, Kotak and IDFC have gained market share at the expense of non bank based AMCs like Aditya Birla Sunlife, Nippon and UTI AMC in the period March 2018 – September 2020.

Fund managers point out that events in the fixed income space which started with the IL&FS default, followed by DHFL default and the Franklin episode where the fund house shuttered six of its debt mutual fund schemes, have led investors to seek safety in bank backed fund house.

“Lot of corporate treasuries were wary of stressed papers and wanted schemes which did not have such paper. The filtering process lead them to bank driven asset managers,” says Madhukar Laddha, Analyst, HDFC Securities.

Data collated by brokerage house HDFC Securities shows that in the liquid space HDFC almost doubled its share from 9.4% to 17.3%, while SBI increased from 8.5% to 14.5% and Kotak AMC increased its share from 5.9% to 7.7%, while Nippon AMC saw its share dip from 9.6% to 5.3%.

In the debt mutual fund space that includes categories like ultra short term, low duration, short duration, gilt and dynamic bond funds, SBI increased its market share to 13.7% from 8.1% earlier, while ICICI increased it to 15.3% from 13.1% earlier. Another notable increase was in IDFC AMC which increased from 4.5% to 9%.

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In the liquid space, HDFC almost doubled its share from 9.4% to 17.3%, while SBI increased from 8.5% to 14.5%. Nippon MF saw its share fall from 9.6% to 5.5%.


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