Axis Mutual Fund Sets Sights on Top Six Position in AUM Rankings
Axis Mutual Fund, the investment arm of Axis Bank, has announced ambitious plans to secure a position among the top six mutual funds in India by assets under management (AUM). Currently ranked within the top 10, it holds the distinction of being the youngest fund in this elite group, showcasing rapid ascent in the competitive financial landscape.
Current Standing and Growth Trajectory
According to Gop Kumar Bhaskaran, Managing Director and CEO of Axis Mutual Fund, the fund boasts an AUM of Rs 3.8 lakh crore, commanding a 5.6% market share. Bhaskaran emphasized that the fund has been growing at a compound annual growth rate (CAGR) of 15%-16%, a pace he expects to continue, driving healthy expansion in the coming years.
The strategic target is to achieve a market share of 6%-7% by the fiscal year 2028-29, which would propel it into the top six slots. This goal underscores the fund's confidence in its performance and market positioning, leveraging its youth and agility to outpace established competitors.
Regional Focus: Bengal's Significant Contribution
Bhaskaran highlighted Bengal's role in the mutual fund industry, noting that the state accounts for 3.5% of the industry's total AUM, placing it among the top five states nationwide. Kolkata, in particular, has emerged as a growth hotspot, with AUM surging by 39% in the 2024-25 fiscal year.
Furthermore, systematic investment plan (SIP) growth in Kolkata was even more robust at 53% during the same period. "In 2024-25, 1.8 lakh SIP customers were added in Kolkata," Bhaskaran stated, pointing to the city's increasing investor engagement and the fund's successful penetration in this key market.
Market Outlook and Economic Factors
On the broader market outlook, Bhaskaran expressed optimism, predicting that the current year would outperform the previous one. He acknowledged that the Indian market has been underperforming relative to the US, China, and some emerging markets, but cited positive indicators for a turnaround.
"Geopolitics will have an impact, but corporate earnings are better and rural demand is back, which is good," he remarked. This balanced perspective suggests that while external factors pose challenges, domestic economic fundamentals, including improved corporate profitability and revived rural consumption, are likely to support market growth and, by extension, mutual fund performance.
Axis Mutual Fund's strategy combines aggressive growth targets with a keen focus on high-potential regions like Kolkata, positioning it as a formidable player in India's evolving financial sector. As it eyes a top-six slot, the fund's trajectory will be closely watched by investors and industry analysts alike.
