The SBI Collaborative Fund (MF), India’s largest fund house, has added three million new Regular Investment Scheme (SIP) accounts so far this financial year, registering a growth of nearly 40 per cent year on year. The finance house said it received an average of Rs 1,800 crore each month through SIPs in FY 22 with an average ticket volume of Rs 2,500 per customer.
SBI MF manages assets of over six trillion rupees, and is the first finance house to reach this milestone. It has a market share of 16.43 percent, the highest of any finance house over the past 10 years. Market share is higher in beyond 30 positions (B30).
This new financial offer from SBI MF (NFO) for the SBI Balanced Advantage Fund garnered a record high of Rs 14,691 crore in August. Earlier this month, SBI Multicap Fund’s NFO mobilized Rs 8095 crore, the highest mobilization by a scheme in the multi-function category.
“The strong growth in new SIPs is driven by the availability of their offerings through a strong distribution network of Independent Financial Advisors (IFAs), national distributors and branches of the parent State Bank of India (SBI). The SBI Collaborative Fund has also increased its presence in the country by opening new branches in Several Level 2 sites.
The strong performance comes ahead of the asset manager’s proposed initial public offering (IPO). The asset manager plans to submit its draft prospectus to market regulator SEBI soon. The size of the IPO of SBI MF is pegged at Rs 7000-7500 crore, estimating the country’s largest fund of Rs 70,000-75,000 crore.
SBI MF is a 63:37 joint venture between the State Bank of India (SBI), India’s largest lender by balance sheet size and Europe’s leading asset manager, Amundi. The SBI plans to offload 6 percent in the initial public offering, while the French asset manager will sell 4 percent.
SBI MF will be the sixth mutual fund house to be listed on the local stock exchange. HDFC MF, MF, Aditya Birla Sun Life MF, UTI MF and Nippon Life India MF are five companies listed in the space.