What do Statistics tell us about Mutual Funds in India
This article presents the data of the Mutual Funds and the Fund Houses, also called Asset Management Companies(AMC’s) of India purely from a statistician’s point of view.
Asset Management Companies
There are a total of 39 AMC’s in India and their ranking based on the number of funds and the total Assets Under Management(AUM) is as below:-
AMC wise number of MF’s over the years
AMC wise AUM of Top Ten Fund Houses
Further the AMC’s whose assets have shown a maximum increase or decrease are as below:-
Top Ten AMC’s whose AUM has Increased from 2009 to 2019
Ten AMC’s whose Assets have Reduced between 2009 to 2019
The chart below shows the industry wise change in AUM:-
Industry wise Change in AUM
Mutual Funds Performance
The performance of Mutual Fund schemes has been bench marked against the following figures:-
Bench marking Values
A brief explanation in respect of the above terms is given below:-
- R-squared – Measure of the percentage of a funds movement that can be explained by the movement in index. Higher the R-squared higher the funds’ co-relation with the index.
- Beta – Measure of a funds’ movement compared to the overall market, where the market is given a Beta of 1.00.
- Alpha – This gives an expectation of returns above (or below) what the beta would predict. Funds with positive Alpha are expected to give returns more than what is predicted by Beta.Sharpe Ratio – Measure of how well the return of a mutual fund compensates the investor for the risk taken. Higher Sharpe Ratio is preferable.
- Expense Ratio – Measure of the expenses used by the AMC (Asset Management Company) or the fund manager. Higher expense ratio does not mean higher profits and typically funds with lower expense ratios should be selected.
Based on the above it is seen that presently no fund meets the benchmark of maximum criteria. However, if we take the minimum criteria to filter the funds, the funds which have performed better than the benchmark criteria are as below:-
Funds whose Performance is Better than the Min Bench Mark Criteria
The category wise AUM of various investors in mutual funds and its change over the years is as below. Figures for 2019 do not include the figures of the last quarter.
Category wise AUM of Investors
Note:- Only figures as downloaded from the site of Association of Mutual Funds of India, amfiindia.com and www.valueresearchonline.com have been used for the above graphs and no inference are being drawn from the data as it is beyond the preview of the article. For a detailed assessment of the AMC’s and Mutual Funds please click here.
