Top 10 Mutual Fund Houses in India

A remarkable growth has been experienced by the Indian mutual fund industry in the past decade. AUMs in the Indian mutual fund industry increased from Rs 39.42 lakh crore in March 2023 to Rs 53.40 lakh crore in March 2024 as a result of increased investment and improved market performance. For many individuals investing in mutual funds can be a great option because these investments are managed by mutual fund houses in India, which offer a variety of schemes to cater to different risk appetites and investment objectives. In this blog, we will discuss the top 10 mutual fund houses in India, their benefits, and factors to consider before investing in them. 
 

What is a Mutual Fund House?

Investment in securities such as stocks, bonds, money market instruments, and other assets is done through mutual fund houses, which are also known as asset management companies (AMC). Managing mutual funds and generating returns for investors is the primary aim of a mutual fund house. Professional fund managers handle these institutions as they make investment decisions based on thorough market research and analysis.
 

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Top 10 Mutual Fund Houses in India

The following table lists the top 10 mutual fund houses in India:

Disclaimer— All the information mentioned above is accurate as of 24th June 2024. However, it is important to conduct research before making any investment decisions in these stocks.
 

Best Mutual Fund Houses in India: Overview

Here is the overview of above mentioned top 10 mutual fund houses in India:

SBI Mutual Fund

On June 29, 1987, SBI Mutual Fund was founded as a trust, with SBI Mutual Fund Trustee Company Private Limited serving as the trustee and State Bank of India (SBI) serving as the sponsor. 

• SBI has a 63% stake in SBI Funds Management Pvt Ltd (SBI FMPL).
• SBI Mutual Fund offers 72 primary schemes.
• Out of these, the AMC offers 37 equity funds, 22 debt schemes, 11 hybrid schemes, and 2 others like gold funds.
• SBI Nifty 50 ETF, SBI S&P BSE Sensex ETF, and SBI Equity Hybrid Fund are the three largest schemes of the fund house

ICICI Prudential Mutual Fund 

In terms of AUM, ICICI Prudential Mutual Fund is the second-biggest mutual fund business in India. ICICI Prudential Asset Management Company Limited, it was founded in 1993 and is a member of the ICICI Group. 

• ICICI Prudential Mutual Fund offers 120 mutual fund schemes. These comprise 78 equity schemes, 26 debt schemes, 12 hybrid schemes, and 4 other schemes.
• ICICI Prudential Balanced Advantage Fund, ICICI Prudential Bluechip Fund, and ICICI Prudential Liquid Fund are the three largest funds of the company as of March 2024.
• As of March 2024, the fund house comprises 12.76% of the industry's AUM.

HDFC Mutual Fund

In 1999, HDFC Limited and abrdn Investment Management Limited formed a joint venture to develop HDFC Mutual Fund, formerly known as HDFC Asset Management Company Limited. As of March 31, 2024, it ranked among India's top mutual fund houses with assets under management of Rs 607341.91 crore or 11.37% of the total assets under management in the industry.

• HDFC AMC offers approximately 89 primary schemes.
• Out of these schemes, 24 are debt funds, 50 are equity-oriented, 11 are hybrid schemes, and 3 others (ETFs, Gold, FoFs, etc.).

Kotak Mahindra Mutual Fund

Kotak Mutual Fund is one of the major asset management companies in India. Kotak Mahindra Asset Management Company Limited (KMAMC) is the asset manager of the fund house. Kotak Mahindra Bank Limited owns the fund house and started mutual fund investment operations in June 1998.

• Kotak Mutual Fund has over 77 mutual fund schemes for investors.
• Out of these, 41 are equity schemes, 25 are debt schemes, 7 are hybrid schemes, and 4 others.
• Kotak Mutual Fund holds 6.93% of the industry's AUM as of March 2024.
• Kotak Flexi Cap Fund, Kotak Equity Arbitrage, and Kotak Emerging Equity Fund are the schemes with the highest AUM as of March 2024.

Axis Mutual Fund 

One of the top 10 asset management companies in India is Axis Mutual Fund, formerly known as Axis Asset Management Company Ltd. It was created in 2009 and it is a joint venture between India's 3rd largest private bank, Axis Bank, and Schroder Singapore Holdings Private Limited (SSHPL).

• Axis Mutual Fund offers 62 mutual fund schemes, as of April 2024
• Out of these, 15 are equity schemes, 15 debt schemes, 6 hybrid schemes, and 26 other schemes
• The fund house has more than 1.26 Crore active investor accounts and a presence in over 100 cities

Nippon India Mutual Fund 

Nippon India Mutual Fund was registered with the SEBI under registration number MF/022/95/1 on June 30, 1995. It was the first mutual fund company listed on stock exchanges in 2017. NIMF was established to launch various schemes offering units to the public, aiming to contribute to the capital market and provide investors with opportunities to invest in diversified securities.

• According to the data from March 2024, Nippon India Mutual Fund offers 86 primary fund schemes.
• Out of these, 47 are equity schemes, 27 are debt schemes, 8 are hybrid schemes, and others, including commodity schemes, are 4.

PPFAS Mutual Fund 

In 2013, the Parag Parikh Mutual Fund was established. The organisation that sponsors it is Parag Parikh Financial Advisory Services (PPFAS) Limited, which was established by the late Parag Parikh in 1992. 

• PPFAS Mutual Fund offers four mutual fund schemes, of which two are equity schemes, one is a debt scheme and one is a hybrid scheme.
• AMC's flagship Flexi Cap Fund is a popular scheme. It's known for also investing part of the corpus in foreign stocks, such as Microsoft, Amazon, Alphabet, and Meta.
• Parag Parikh Flexi Cap Fund, Parag Parikh ELSS Tax Saver Fund, and Parag Parikh Liquid Fund are the largest schemes of the fund house as of March 2024.

UTI Mutual Fund

UTI Mutual Fund was founded in January 2003 and is a fund firm registered with SEBI. The SBI, Bank of Baroda, Punjab National Bank, LIC, and T Rowe Price Group Inc. are its five major institutional backers. 

• UTI MF has more than 1.2 crores of Investor folios.
• The company has 210 District Associates, more than 190 financial centres, and 56,600 distributors.
• It offers over 68 primary mutual fund schemes for investors with varying risk appetites.
• Out of these, 33 are equity-based schemes, 22 are debt schemes, 9 are hybrid schemes, and 3 are other schemes (commodity, etc.).

DSP Mutual Fund

In India, DSP Mutual Fund is a reputable asset management firm. The DSP family's history with investments dates back to their initial foray into the stock-broking industry in the 1860s.

• DSP MF offers 65 mutual fund schemes.
• Out of these, 20 are debt schemes, 36 are equity schemes, 6 are hybrid schemes, and 3 belong to other categories.
• The company holds 2.58% of the industry's AUM.
• The largest funds of the company as of March 2024 are the DSP Equity & Bond Fund, DSP Arbitrage Fund, and DSP Dynamic Asset Allocation Fund.

Bandhan Mutual Fund

Bandhan Asset Management Company Limited manages Bandhan Mutual Fund. The fund house offers investment products across equities, debt, and commodities. It has a presence in over 46 cities across India and investors from more than 375 cities and towns.

• The company offers its investors 58 primary mutual fund schemes.
• Of these, 25 are debt schemes, 23 are equity schemes, and 10 are hybrid schemes.
• Bandhan AMC held around 2.5% of the industry AUM as of March 31, 2024.
   

Factors to Consider When Selecting a Mutual Fund House

The following are the factors to keep in mind when selecting a mutual fund house among the top 10 mutual fund houses in India:

• Track record of performance: Carefully conduct a thorough assessment of the historical performance of the mutual fund houses. This analysis will offer valuable insights into the proficiency and reliability of the fund manager, but also keep in mind that past performance does not guarantee future results.
• Risk management: Risk management can be assessed by analysing whether the fund house attains greater returns with increased risk or effectively mitigates risk while generating satisfactory returns. It is important to evaluate the fund's appccfroach to risk management to make informed investment decisions.
• Management team: It is important to consider the experience and success of the fund managers because a skilled and experienced team can provide a significant advantage.
• Fees and expenses: Low fees can impact positively on your overall returns over time and this is why it’s important to understand all the fees and expenses that are associated with management fees, investments in mutual funds, entry and exit fees, and other administrative expenses. 
• Technology and accessibility: You can look for digital services like online transactions, mobile applications, and comprehensive reporting tools. By using user-friendly platforms, you can access your funds and manage your investments with convenience.
   

How Tax is Applied on Best Mutual Funds in India?

Here are the key details of how tax is applied to mutual funds in India:

There are two types of earnings from mutual funds: Capital gains and Dividends. Capital gains are profits we get from selling mutual fund units whereas dividends are income that is distributed by the fund. 

Investors pay taxes on capital gains depending on how long they hold the investment and the type of fund they have. Dividends, on the other hand, are taxed based on the investor's income tax bracket.

When you make short-term capital gains (STCG) within a year, you'll face a 15% tax rate. On the other hand, if your long-term capital gains (LTCG) amount to more than ₹1 lakh and the investment has been held for over a year, you'll be taxed at 10%.

In the context of debt funds, profits from units sold within three years are liable for Short Term Capital Gains (STCG) and are calculated based on the investor's income tax slab. However, after three years, LTCG units are subject to a 20% tax rate with the added benefit of indexation.

A hybrid mutual fund is taxed like an equity fund if more than 65% of its assets are in equities. Funds with less than 65% are taxed like debt funds.

To ensure professional management and diversification, mutual funds are managed by asset management companies as they pool funds from investors to invest in various securities. 
 

Benefits of Investing in Top Mutual Fund Houses

Following are the benefits of investing in the top 10 mutual fund houses in India :

Diversification

A diverse portfolio is offered by mutual funds which includes stocks, bonds, and other assets. Due to diversification, investors can reduce risk by spreading their investments across various securities. This can be a challenging task for individual investors to undertake on their own.

Professional Expertise

Leading mutual fund companies employ investment experts to conduct research on market trends and make well-informed investment decisions. With this professional expertise, investors can benefit from top-tier asset management without having to navigate the complexities themselves..

Liquidity

High liquidity is provided by mutual funds, helping investors to buy and sell shares with ease and security. This flexibility comes in handy during financial needs or when adjusting investment strategies. 

Wide Range of Options

Mutual fund houses provide a diverse selection of options, encompassing various asset classes and risk levels. This wide array allows investors to tailor their portfolios to align with their financial goals and risk tolerance.

Regulatory Inspection

Strict regulatory standards are followed by reputable mutual fund houses, ensuring both transparency and fairness. This regulatory inspection protects investors from fraudulent activities and promotes a stable investment environment.
 

Conclusion
Among the top 10 mutual fund houses in India, selecting the right one is important for maximising your investment returns and for achieving your financial goals. By considering all the factors mentioned above you can make informed decisions.  A wide variety of schemes are offered by the top mutual fund houses in India that cater to different investment needs, ensuring that there is something for every type of investor. To simplify and manage  your investment process you can also use a reliable stock market app, it will help you stay informed about market movements.