SBI Mutual Fund became the first asset manager to cross Rs 4 lakh crore mark in asset base, thanks to a sharp rally in equities and a steady flow, a company official said on Tuesday.

The fund house, jointly owned by State Bank of India and Amundi of France, became the largest asset manager in the country in February this year when it toppled HDFC AMC from the top position.

“Money had been flowing from all segments whether retail or institutional. We have got good flows in debt funds and in equity as well,” said DP Singh, Chief Business Officer at SBI Mutual Fund.

Singh added that the mark to market gains due to the rally in share markets have also helped the fund house attain this milestone. He said Rs 30,000 to 40,000 crore growth in AUM has come from the market rally, which has pushed the paper value of stocks owned by the company higher.

BSE Sensex has jumped 38 per cent from its March lows. Its NSE counterpart, Nifty has shown a similar climb as sentiments improved on Dalal Street.

Market analysts claim that the MF house has greatly benefited from a constant flow of funds from the government-run Employee Provident Funds in its Nifty ETF, which has pushed its AUM significantly but Singh tried to downplay that.

“We have added Rs 87,000 crore in AUM during the current financial year. The flow from EPFO will not be more than Rs 5,000 crore in FY21 till now,” Singh said.

The company said it is hopeful of a steady growth going ahead as the penetration is still very low. Singh said with bank interest rates going down significantly, it is a good opportunity for the MF industry to get more money in the debt portfolio.

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