In just two months, HDFC Mutual Fund has moved from number five in the league tables for liquid and money market funds to the top spot. The assets under management (AUM) at HDFC Mutual Fund in these categories of funds have risen by 58.5% since August, while the AUM of all remaining mutual funds have fallen 16.1%. SBI Mutual Fund and Kotak Mutual Fund also reported an increase in AUM, albeit at a slower pace of 21.9% and 12%, respectively.
The default by Infrastructure Leasing and Financial Services Ltd (IL&FS) in September had led to large redemptions in some mutual funds. HDFC Mutual Fund, on the other hand, has benefitted since it did not have any exposure to troubled names such as IL&FS and Dewan Housing Finance Corp. Ltd (DHFL).
The outsized increase in HDFC Mutual Fund’s market share suggests its brand is trusted far more than others, especially when the markets are in turmoil.