Union MF on strong wicket in Tamil Nadu; total AUM grows 78%
In fact, the Indian MF industry has grown 6-fold in a span of 10 years to Rs 61.16 lakh crore as on June 30, 2024 from Rs 9.75 lakh cr in June 2014, said Madhukumar Nair, CEO, Union MF.
Madhukumar Nair chief executive officer, Union Asset Management Company Private Limited
CHENNAI: India’s mutual fund (MF) industry continues to grow at a healthy pace, with the overall industry’s Assets Under Management (AUM) now surpassing the key milestone of Rs 60 lakh crore in June amid record-breaking surge in equity markets.
In fact, the Indian MF industry has grown 6-fold in a span of 10 years to Rs 61.16 lakh crore as on June 30, 2024 from Rs 9.75 lakh cr in June 2014, said Madhukumar Nair, CEO, Union MF.
Giving an overview of the MF industry’s robust performance over the years, he attributed it to the revival in the retail investors’ participation in stock markets via the Systematic Investment Plan (SIP) route.
The Indian MF industry has a total of 8.99 crore SIP accounts, while the total amount collected through the SIP route in a single month in June this year stood at a record Rs 21,262 crore.
In just 3 months of 2024-25, the total SIP contribution was at Rs 62,537 crore while retail investors pumped in Rs 1,99,219 lakh crore in 2023-24.
The MF penetration across the country, especially in tier 1 and tier 2 cities along with small towns, over the past few years has certainly changed the industry landscape, he said, noting that along with other MF houses, Union Asset Management Company, sponsored by Union Bank of India and Dai-ichi Life Holdings, Inc, also has made strides over the past decade or so, with its total AUM now reaching close to Rs 16,669 crore as of 30 June, 2024. Union MF offers 24 open-ended MF schemes, of which 11 are equity schemes, 7 debt schemes, 4 hybrid schemes, and 2 are solution-oriented schemes, Nair said.
While Union AMC has a strong presence in the south, it has made inroads into TN, and Chennai, in particular, over the past few years.
In just one year, from March 2023, the AUM grew by 78 per cent in March 2024, he pointed out. TN has 9,436 distributors.
Additionally, UBI, the parent company of Union AMC, operates 559 branches in the Chennai zone, signifying the pivotal role the bank can play in further expanding its MF business in TN.