ICICI Prudential MF tops investor safety.

 ICICI Prudential MF tops investor safety.

New Delhi: Recently, the way the court has been hit by the telecom company Vodafone Idea paying Rs 1 lakh crore adjusted gross revenue (AGR) has affected the schemes of companies like Franklin Templeton, UTI, Aditya Birla and Nippon Mutual Fund It has also shown negative impact on investors. It is believed that debt mutual funds are better in terms of safety than equity funds, but this has now changed and investors have become more careful about investing in debt funds.

Credit risk management is separated from fund management

Nimesh Shah, MD and CEO of ICICI Prudential Mutual Fund, says that 10 years ago, our company made a decision in which credit risk management was separated from fund management. However, instead of running behind high returns, the team takes independent calls keeping in mind the risks associated with a date paper. The YTM (Yield to Maturity) of many funds is higher than our schemes, but we believe that independent assessment of credit should be done instead of running behind high interest rates.

No schemes defaulted in last 22 years

The top fund houses ICICI Prudential, HDFC SBI and Kotak Mutual Fund have topped the market share in debt funds, according to data from EarthLab.com. Though Kotak Mutual Fund rolled out FMPs in Reliance Home Finance in December, SBI wrote off the entire exposure. However, ICICI Prudential has not defaulted to any scheme in the last 22 years and has invested Rs 334 crore in its own credit fund. The company has achieved all payments on time and as a result its market share in debt mutual funds increased to 15.6 per cent in December 2019 from 13.8 per cent in December 2018. Its AUM also grew by 35 percent to Rs 1,23,553 crore from Rs 93164 crore, excluding the same period (liquid and overnight), while the fund industry's AUM saw a growth of 17.7 percent.

HDFC Mutual Fund's AUM stood at Rs 1,07,606 crore

According to EarthLab.com, HDFC Mutual Fund's AUM, apart from ICICI Prudential, is Rs 1,07,606 crore and has a market share of 13.6 per cent as of December 2019. While Birla Sun Life Mutual Fund holds AUM 1,05,975 crore and 13.4 per cent and Kotak Mahindra Mutual Fund holds AUM 68,670 crore and 8.7 per cent.