PGIM India Mutual Fund doubles AUM in 6 months to Rs 17,700 crore; eyes Rs 20,000 crore by March

PGIM India Mutual Fund, a fully-owned subsidiary of the US-based Prudential Group’s Prudential Global Investment Managers, has doubled its assets under management between April and October 2021, a full six months ahead of its target, at Rs 17,700 crore from Rs 9,400 crore.

The fund house, which has announced the launch of the country’s first international realty fund of funds which opens on Monday, has also doubled its customer folios during the first six months of the current fiscal–from 2.44 lakh in end-March to a little over 5 lakh by the end of October 2021.

The fund house expects its total AUM to cross the Rs 20,000 crore mark by March 2022, of which Rs 18,000 crore will be mutual fund assets.

The highly-cluttered domestic mutual fund industry with around 50 players has seen their total assets under management (AUMs) rising to a record Rs 38.21 lakh crore as of end-October, according to the data released by the industry lobby Amfi.

PGIM India Mutual Fund had closed FY21 with a total AUM of Rs 9,400 crore, of which Rs 6,900 crore were mutual funds assets and the rest were PMS and advisory AUMs.

“Our total AUM has grown to Rs 17,700 crore as of end October from Rs 9,400 crore as of end-March 2021. Of this, the mutual fund AUM more than doubled to Rs 15,000 crore (as of November 10), from Rs 6,900 crore at end-March 2021 and the rest Rs 2,700 crore of AUMs have come from advisory services and PMS. We’ve more than doubled the AUM in just six months as our target was March-end 2022,” Ajit Menon, the chief executive of PGIM India Mutual Fund, told PTI on Friday.

Of the mutual fund assets, equity AUM almost trebled during the first half — from Rs 4,400 crore as in March-end to Rs 12,370 crore end-October, thanks to the massive market rally.

“But what is more interesting is that as much as 70 per cent of our growth has come from new sales, while the industry has grown only 30 per cent on this front during this period and 70 per cent of the industry growth was driven by the market rally–something clearly underlined by the doubling of our investor folios during this period, from 2.44 lakh in end-March to over 5 lakh as of end October, whereas the industry added just 14 per cent more folios,” Menon said.

Year-to-date, of the total industry growth of 17 per cent at Rs 38.21 lakh crore as of end October, equity and fund of funds clipped at 29 per cent while the same for PGM grew 130 per cent, he said.

Menon said of the total non-MF assets, total international funds’ assets rose to Rs 2,000 crore now from Rs 850 crore in March. Of this, global equity AUM stood at Rs 1,750 crore and emerging markets fund is around Rs 250 crore.

Its small caps fund which began with Rs 500 crore last year is now Rs 1,300 crore now, he said, adding he expects to collect at least Rs 750 crore (USD 100 million) from its newly announced global select real estate securities fund of fund by March.

The new scheme is the country’s first such fund and the same will hit the market on Monday and closes on November 29, Menon said.

The fund house has also massively ramped up the number of its advisors from 3,000 in March to over 5,000 now.


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