Indians, who had traditionally invested in bank deposits and gold, have embraced equity investments such as stocks and mutual funds wholeheartedly. Since direct stock investing is not for everyone, mutual funds have emerged as the top investment choice for millions of newbie retail investors. For perspective, the assets under management (AUM) of the Indian mutual fund industry zoomed from ₹9.59 trillion as of Sept. 30, 2014, to ₹67.09 trillion as of September 30, 2024, according to the AMFI website. This blog post will discuss the top 10 mutual fund companies in India.
Mutual fund houses in India play an essential role in managing and operating mutual funds. Millions of investors trust their expertise to invest in equities and bonds to fetch them superior returns. Based on their assets under management and the number of schemes managed, we have made a selection of the top 10 mutual fund companies in India.
Top mutual fund houses in India
Mutual funds in India are regulated by the Securities and Exchange Board of India (SEBI). Below are the 10 mutual fund companies in India, arranged in the order of AUM.
| Mutual Funds | AUM (Rs. Cr) |
| SBI Mutual Fund | ₹1,134,051.24 cr |
| ICICI Prudential Mutual Fund | ₹901,179.33 Cr. |
| HDFC Mutual Fund | ₹780,165.85 Cr. |
| Nippon India Mutual Fund | ₹564,982.20 Cr. |
| Kotak Mahindra Mutual Fund | ₹481,840.61 Cr. |
| Aditya Birla Sun Life Mutual Fund | ₹378, 540.50 Cr. |
| UTI Mutual Fund | ₹351,964.66 Cr. |
| Axis Mutual Fund | ₹321,862.22 Cr |
| Mirae Asset Mutual Fund | ₹199,701.30 Cr. |
| DSP Mutual Fund | ₹187,264.64 Cr |
AUM as of September 30, 2024
So, these are the top mutual fund houses in India that offer some of the best schemes to cater to different types of investors.
Factors to consider before choosing a mutual fund house
Selecting the appropriate mutual fund house is the most important decision an investor has to take. The fund house you choose will determine how your money will be managed. You need to analyze factors such as costs, the fund’s historical performance, investment strategies followed, and the fund size. Here are some important aspects to consider before choosing a mutual fund house:
● Performance history
A mutual fund’s track record shows how its funds have done and how they performed during market downturns. One-year returns are not a reliable metric and investors need to see how the fund has performed across market cycles. This will help determine if the fund house can deliver sustainable returns, be it a bull or bear market.
● Asset size
Another selection criteria that signals the fund’s market position and the investors’ trust level is the size of the mutual fund house though it should not be the sole criterion for decision-making. But it can be a useful indicator in your selection process.
● Fund management
The fund management capability is one of the necessary inputs that determine the performance of mutual fund houses in India. It implies that managers with expertise in operating across different market cycles should be able to provide superior returns. The specific investment style followed by the fund manager also needs to be evaluated: whether they follow a conservative, moderate, or aggressive style.
● Expense ratio
The expenses ratio refers to the cost incurred by a mutual fund to manage your investment on an annual basis. A higher expense ratio means that your returns are reduced. Hence, comparing the expense ratios from one fund house to the other should be done to avoid being charged high for similar services or rates of return.
● Investment style
The top 10 mutual fund companies in India have their own investment style, which may be anything from aggressive growth strategies to a conservative, income-focused approach. Understanding your risk tolerance and monetary goals is advisable when choosing the fund house.
● Market reputation
The market reputation of a fund house refers to the performance, client relationship, and ethical standards of the fund house. Reputable fund houses are known to adhere to clear procedures, provide excellent customer relations/returns, and practice ethical investment. You can read reviews about the mutual fund house, rating, and ranking which can help in understanding outcomes in the context of the financial market.
● Investor services
The level of investor services is quite important when choosing a mutual fund house. Look out for features such as tracking your investments online, quick customer help, and easy-to-understand procedures. Fund houses also offer consultation services, which enable investors to make the right investment decisions depending on their objectives.
● Investment options
The number of investment options a mutual fund house offers is another thing to consider. Check if your chosen house offers different MF schemes like equity funds, debt funds, hybrid funds, and sectoral funds. It empowers investors to put their money into different opportunities, risks, and money-making objectives depending on the amount of risk they are willing to undertake.
Best mutual fund houses in India: An overview
The top 10 mutual fund companies in India come with their respective areas of expertise.
1. SBI Mutual Fund
SBI Mutual Fund is a popular mutual fund house in India that comes from the storied State Bank of India group. It offers equity, debt, and hybrid schemes, catering to different investors. Some of its flagship funds as SBI Bluechip Fund have given consistent returns over the long term. The fund house also has one of the biggest distribution networks, thanks to its extensive bank network that makes its schemes easily available across India.
2. ICICI Prudential Mutual Fund
ICICI Prudential Mutual Fund Company provides a diverse range of schemes and sound fund management. A notable scheme from the fund house is ICICI Prudential Balanced Advantage Fund with a low risk/ high return ratio. This has led the fund house to establish a strong performance record.
3. HDFC Mutual Fund
HDFC Mutual Fund has always been one of the premier mutual fund companies in India that has schemes that perform well across market cycles. The mutual fund house offers a number of equity, debt, and hybrid funds. Schemes like HDFC Top 100 and HDFC Flexi Cap Fund (formerly HDFC Equity Fund) have been category leaders.
4. Nippon India Mutual Fund
Nippon Life India Asset Management Limited (NAM India), formerly known as Reliance Nippon Life Asset Management Limited, is one of the largest asset management companies in India. NAM India is the asset manager of Nippon India Mutual Fund (NIMF). The company is involved in managing mutual funds including Exchange Traded Funds (ETFs); Managed Accounts, including Portfolio Management Services (PMS), Alternative Investment Funds and Pension Funds; and Offshore Funds and Advisory Mandates. The firm is also promoted by Nippon Life Insurance Company, one of the leading private life insurers in Japan, with assets of over US$722 billion.
5. Kotak Mahindra Mutual Fund
Kotak Mahindra Mutual Fund is a mutual fund house with a special focus on risk management measures and good performance in debt and equity segments. Kotak Flexicap Fund and Kotak Equity Opportunities Fund are some of its leading schemes.
6. Aditya Birla Sun Life Mutual Fund
Aditya Birla Sun Life Mutual Fund is a popular mutual fund house in India. It has more options in every fund type, including equity, debt, and hybrid. The mutual fund house has a consistent return comparison, especially in the debt fund product segment. Some of its flagship schemes are Aditya Birla Sun Life Corporate Bond Fund and Aditya Birla Sun Life Tax Relief 96.
7. UTI Mutual Fund
UTI Mutual Fund is the oldest mutual fund scheme in India that was established by an Act of Parliament in 1963. The fund house offers several schemes such as the UTI Equity Fund and UTI Nifty Index Fund.
8. Axis Mutual Fund
Axis Mutual Fund has emerged as a preferred choice for investors due to its consistency in the equity fund segment, especially Axis Bluechip Fund and Axis Long Term Equity Fund. The fund house maintains a quality-focused investment strategy.
9. Mirae Asset Mutual Fund
Mirae Asset Mutual Fund is an asset management company (AMC) that offers various mutual fund schemes to help investors grow their wealth. The fund house offers some 67 funds across categories.
10. DSP Mutual Fund
DSP Mutual Fund, which had initially partnered with BlackRock, is known for its expertise in fund management. DSP Midcap Fund and DSP Tax Saver Fund are both rated high.
Conclusion
The Indian mutual fund industry has witnessed fast growth over the last several years. The top 10 mutual fund companies in India have been the key players in this segment that has attracted retail investors in droves. These leading players have proved themselves to be capable of handling a variety of funds, which are tailored to suit investor preferences.
