Reliance MF takes top spot on profitability

04 Oct 2011

Reliance mutual fund has overtaken HDFC Mutual Fund to emerge as the most profitable fund house in the country, for the latest financial year.

For FY 2011, profit after tax of Reliance MF touched Rs261 crore, while that of HDFC MF was Rs242 crore.

On year-on-year basis, Reliance Asset Management company's PAT was up 34 per cent in fiscal 2011, whereas HDFC MF's profit was up 16.34 per cent, data provided by the Association of Mutual Funds in India showed.

While figures of UTI's MF's were not available for the latest fiscal, Franklin Templeton currently ranks as the third most profitable with a PAT of Rs97 crore (for fiscal year ended September 2010).

Most of fund houses follow the April-March financial year and among the top 10 include Birla Sun Life AMC with a PAT of Rs85 crore, followed by SBI AMC (Rs79 crore), ICICI Prudential AMC (Rs72 crore), DSP AMC (Rs47 crore), Tata AMC (Rs17 crore) and Kotak AMC (Rs11 crore).

According to Anil Ambani, who spoke at the annual general meeting of Reliance Capital, talks for a stake sale in its asset management business to Nippon were also in advanced stages.

He said Reliance also planned to take its asset management businesses to other emerging markets and would look at further expansion of its wealth management and private equity businesses.