Mutual Fund House Ranks Based on Performance – Dec 2018

Looking at Mutual Fund House ranks based on AUM does not solve any purpose for investors and advisers. AMCs should move away from AUM race and start publishing how much % of their AUM is beating benchmark – the primary role for which investors pay management fees to the Mutual Fund. 

Following are the ranks as on Dec 31, 2018 based on the percentage of Equity AUM beating its respective benchmark over last 1, 3 and 5 year. Final AUM Beating Benchmark Score is calculated by assigning 20%, 30% and 50% weights for 1, 3 and 5 year period respectively based on percentage of AUM beating benchmark.

The analysis shows that higher AUM does not necessarily mean better performance, which is the general belief among many advisers and investors. 

Kotak, Mirae Asset, Principal, Parag Parikh and Axis are the top 5 fund houses based on performance as on Dec 2018. 

Rank AMC AUM Beating Benchmark Score
1 Kotak MF 75%
2 Mirae Asset MF 73%
3 Principal MF 71%
4 Parag Parikh MF 70%
5 Axis  MF 63%
6 Tata MF 58%
7 HDFC MF 58%
8 L&T MF 54%
9 DSP MF 53%
10 Invesco MF 53%
11 Aditya Birla SL MF 53%
12 Reliance MF 53%
13 Franklin Templeton MF 51%
14 Quantum MF 50%
15 SBI MF 50%
16 ICICI Pru MF 47%
17 Canara Robecco MF 46%
18 IDBI  MF 45%
19 Edelweiss MF 45%
20 Sundaram MF 36%
21 HSBC MF 34%
22 BNP Paribas MF 31%
23 IDFC  MF 29%
24 Motilal Oswal MF 28%
25 Essel MF 26%
26 LIC MF 20%
27 UTI MF 19%
28 DHFL Pramerica MF 18%
29 Union MF 14%
30 BOI Axa MF 9%
31 JM Finance MF 4%
32 Baroda MF 0%
33 Indiabulls MF 0%
34 Mahindra MF 0%

The analysis considers all open-ended diversified equity and hybrid funds (Sector/Thematic and Arbitrage Funds are removed for this analysis) 

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