Top Asset Management Companies in India

The top asset management companies in India have been performing fairly well of late in spite of the condition of the mutual fund investors in the present economic scenario. During the 2011-12 fiscal the leading companies in this segment have, in fact, been profitable in their business operations.

According to Investopedia, an asset management company is one which makes an investment of the funds it has received from its clients into securities that are in line with the actual financial objectives of the company itself. With an asset management company, an individual investor has more diverse options than he or she would have otherwise been able to avail.

HDFC Mutual Fund has been the biggest performer in 2011-12 fiscal, replacing Reliance Mutual Fund. In 2012, Reliance has earned an approximate net profit of INR 276 crore, while in 2011 the same figure had stood at INR 261 crore.

This represents a growth of 5.6 percent on a year-on-year basis. In the same period HDFC Mutual Fund, which is the biggest of its kind in India, has gone up from INR 242 crore to INR 269 crore.

ICICI Asset Management Company, which is the third biggest fund based organization in the country, saw a profit of 22.5 percent earning INR 88 crore in 2012 as opposed to INR 72 crore in 2011. However, Birla Sun Life AMC (Asset Management Company) saw a 30 percent dip in its profits in 2012.

The CEO of Reliance AMC, Sundeep Sikka, states that the company has focused on retail customers from a long term view and this has contributed in a major way to its profitability. Even though retail acquisition is costly it yields profits in the long term. He opines that the company is in it for the long haul.

As of March 31, 2012 the average worth of the assets being managed by 44 fund houses was estimated at INR 6,64,792 crore and 54 percent of the total amount was being controlled by the 5 leading companies.

In all, the total worth of the assets under management went down by a bit more than 5 percent. The equity AUM (assets under management) also decreased by 6.7 percent at the same time.

Dhirendra Kumar, who operates as the CEO of Value Research, a firm that is engaged in tracking funds, has stated that the mutual fund business requires low capital and a company can keep making profits after attaining a sustainable figure. The AMCs also make greater profits with more equity assets.

List of Top Asset Management Companies in India



UTI Asset Management

The major shareowners of UTI Asset Management are State Bank of India, bank of Baroda, Punjab National Bank, and Life Insurance Corporation. It is the oldest provider of mutual fund services in India

At the end of 2011-12 UTI's assets were valued at INR 11,387.9 million as opposed to INR 10,653.9 million. In the same year its aggregate revenue was INR 4,475.1 million and its profits were INR 1,340.9 million. The company has also performed well in terms of achievements like winning 8 prizes at the ICRA Mutual Fund Awards 2012 and the Star Fund House Of The Year - DEBT Award in the same year.

Birla Sun Life Asset Management

One of the leading asset management companies in India, Birla Sun Life Asset Management is a combined effort of the India based Aditya Birla Group and Sun Life Financial, which is one of the top insurers in Canada. Its products and services may be broken down into the following:
  • Wealth creation
  • Savings
  • Tax savings
  • Regular income
Reliance Group

Reliance Mutual Fund is owned by the Reliance Group and is one of the quickest growers in the segment. It is presently operative in 179 cities across India. On an average it manages assets worth INR 86,327 crores and has between 61 and 67 lakh investor portfolios.

In 2011-12 the consolidated gross income of Reliance Capital Asset Management Limited was INR 664,68,33,246 and its net profit in the same period was INR 246,09,43,867up from INR 236,18,48,818 in 2010-11. The balance carried to the balance sheet was INR 8271075316 compared to INR 5810154693 IN 2010-11.

Tata Group

Tata Mutual Fund enjoys the support of Tata Group, which is one of the premier brands in the country and presently caters to several lakh investors. It manages assets that are worth approximately INR 20,247 crores.

In 2011-12 the total worth of the equities and liabilities of Tata Asset Management Company was INR 1,885,402,125 while in 2010-11 the figure read INR 1,674,312,573.

Franklin Templeton

In India Franklin Templeton has been operating for more than 10 years. Its first office was launched here during 1996 as the Templeton Asset Management India Private Limited and its mutual fund business in India was started by introducing the Templeton India Growth Fund.

L&T Finance Limited

The L&T Mutual Funds are issued by L&T Finance Limited that was set up as a NBFC (non banking finance corporation during November 1994. At present the organization also offers corporate and infrastructure finance, wealth management, loans, and general insurance services apart from mutual funds.

SBI

SBI Mutual Fund has been one of the leading names in the business for the past two decades and half. The company is a combined enterprise of AMUNDI from France and the State Bank of India, one of the leading banks in India. At present the organization has at least 222 acceptance points in India.

In 2011-12 the total income of SBI Mutual Funds was INR 24,758.25 lakh and its post tax profits amounted to INR 6,051.91 lakh. The net balance brought forward from the earlier year in 2011-12 was INR 18,017.54 lakh compared to INR 14,293.63 lakh in 2010-11.

In the same period the asset management company's amount available for appropriation went up from INR 22,178.39 lakh to INR 24,069.45 lakh. Its balance to be carried forward also increased from INR 18,017.54 lakh to INR 20,093.80 lakh.

DSP BlackRock

DSP BlackRock mutual funds are offered by DSP BlackRock Investment Managers, which is one of the leading asset managers in the country. It is a combined venture of BlackRock and DSP Group. The latter is led by Hemendra Kothari, has been in the business for 145 years. It is also one of the entities that set up the Bombay Stock Exchange.

BlackRock is the biggest publicly listed asset management organization of the world. It operates in South and North America, Australia, Europe, Middle East, Asia, and Africa. It has at least 9300 employees and has an investor base spanning corporate entities, union, public companies, and industry pension providers.

At the end of the quarter that concluded after September 2012 DSP BlackRock had earned INR 1,334,776.61 lakh and its equity amounted to INR 1,014,833.57 lakh.

HDFC Asset Management Company

HDFC Mutual Fund is a product of the HDFC Asset Management Company Limited (AMC), which was set up on December 10, 1999 as per the Companies Act, 1956. Its headquarters are presently at Mumbai and it owns paid up capital worth INR 25.169 crore.

In 2011-12 its pre-tax profit amounted to INR 381.49 crores compared to INR 355.78 at the end of 2010-11. In the same period its post tax profits grew from INR 242.11 crores to INR 269.14 crores, balance carried forward from the earlier year increased from INR 281.32 crores to INR 404.16 crores, and balance carried forward to the balance sheet went up from INR 404.16 crores to INR 487.15 crores.

Religare Asset Management Company Limited

Religare Mutual Fund is marketed by the Religare Asset Management Company Limited. At the end of the quarter that concluded after September 2012, the organization's average asset base is at least INR 126 billion. It caters to individual investors as well as institutions and corporate clients.

In 2011-12 Religare Mutual Fund earned INR 572,198 thousand in total income compared to INR 391,688 thousand in 2010-11. Its total expenses in the same period went down from INR 862,913 thousand to INR 550,364 thousand.

ICICI Prudential Asset Management Company Limited:

The ICIC Prudential Mutual Fund is offered by ICICI Prudential Asset Management Company Limited. It is a joint venture of Prudential PLC, based in the UK, and ICICI Bank. The company was inaugurated during 1993 and is one of the biggest asset management entities in India.

It offers international advisory mandates, and portfolio management services along with mutual fund asset under management services. Its international advisory mandates are available in asset categories such as debt, real estate, and equity. The company has grown substantially in the last few years with operations in almost 150 areas and at least 700 employees.

At the end of 2010-11 its equities and liabilities were worth INR 2152.2 million as opposed to INR 2,493.6 million after 2011-12. In the same period its assets went up to INR 1407.5 million from INR 1,263.4 million. The value of its current assets in the same time went up from INR 888.8 million to INR 1,086.1 million.

Its total income in the period under consideration increased from INR 3,497.1 million to INR 3,507.7 million and its aggregate expenditure came down from INR 2,463.4 million to INR 2,222.5 million. The net profit after tax deductions also went up from INR 718.3 million to INR 880.6 million.

Kotak Mahindra Asset Management Company Limited

Kotak Mahindra Asset Management Company Limited or KMAMCL is owned by Kotak Mahindra Bank Limited. The fund house has entered into collaboration with T Rowe Price for marketing funds on a global basis.

The net worth of the group is INR 7911 crore and it has approximately 20 thousand employees who cater to the approximately 7 million customer accounts. The company's distribution network comprises 1716 branches, satellite offices, and franchisees in at least 470 towns and cities in India.

Sundaram Asset Management Company Limited

Sundaram Asset Management Company Limited was set up during 1996. The company is owned by Sundaram Finance, which is one of the oldest non banking financial companies of India. For the quarter that ended in September, the company had, on an average, managed assets worth INR 13,668.88 crore. It, along with SBI Mutual Fund is among the companies that are planning to buy mutual fund property worth INR 789 crore from Daiwa Asset Management India.

The company also has offices in the following locations:
  • New York
  • Dubai
  • California
  • Mauritius
  • San Francisco
  • Singapore
  • London

Other Asset Management Companies Operating in India

  • Axis Asset Management Company Ltd.
  • JPMorgan Asset Management India Pvt. Ltd.
  • Baroda Pioneer Asset Management Company Limited
  • Birla Sun Life Asset Management Company Limited
  • LIC NOMURA Mutual Fund Asset Management Company Limited
  • BNP Paribas Asset Management India Private Limited
  • Mirae Asset Global Investments (India) Pvt. Ltd.
  • BOI AXA Investment Managers Private Limited
  • Morgan Stanley Investment Management Pvt. Ltd.
  • Canara Robeco Asset Management Company Limited
  • Motilal Oswal Asset Management Company Limited
  • Daiwa Asset Management (India) Private Limited
  • Peerless Funds Management Co. Ltd.
  • Deutsche Asset Management (India) Pvt. Ltd.
  • PineBridge Investments Asset Management Company (India) Pvt. Ltd.
  • Edelweiss Asset Management Limited
  • PPFAS Asset Management Pvt. Ltd.
  • Escorts Asset Management Limited
  • Pramerica Asset Managers Private Limited
  • Goldman Sachs Asset Management (India) Private Limited
  • Principal PNB Asset Management Co. Pvt. Ltd.
  • HSBC Asset Management (India) Private Ltd.
  • Quantum Asset Management Company Private Limited
  • IDBI Asset Management Ltd.
  • Religare Asset Management Company Private Limited
  • IDFC Asset Management Company Limited
  • Sahara Asset Management Company Private Limited
  • India Infoline Asset Management Co. Ltd.
  • Indiabulls Asset Management Company Ltd.
  • Taurus Asset Management Company Limited
  • ING Investment Management (India) Pvt. Ltd.
  • Union KBC Asset Management Company Private Limited
  • JM Financial Asset Management Private Limited
Last Updated on 12/28/2012
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