Best performing AMCs in February 2021 for equity investing

Equity markets continued to provide better returns in the month of February 2021. Where S&P BSE Sensex gave returns of 6.08 per cent and S&P BSE 500 gave 7.77 per cent, it was metals, PSUs, infrastructure, and power index that outshined other indices in February 2021 by giving returns of 24.37 per cent, 22.49 per cent, 20.71 per cent, and 20.66 per cent, respectively. Having said, equity markets continue to trend higher despite rising volatility. This can be well-attributed to the massive fiscal stimulus in the western economies leading to a record rise in broad money supply growth. And for India, the domestic environment is favourable as, since the last few years, noteworthy positives have been witnessed such as cleaning of the balance sheet of Indian banks’, corporate balance sheets getting healthier and various reforms on corporate taxes, performance-linked incentives (PLI), labour, farming, GST, real estate, etc. Therefore, there is room for substantial improvement in corporate earnings. Amid such a performance by the equities, it makes much more sense to know which asset management company (AMC) performed better in the month of February 2021. 

Purely in terms of assets under management (AUM), it is HDFC AMC that tops the charts with an AUM of Rs 1.05 lakh crore, followed by SBI, Axis, and ICICI Prudential AMC with an AUM of Rs 93,896 crore, Rs 93,865 crore and Rs 92,647 crore, respectively. However, when it comes to performance, it is Nippon India, which performed well in the equity space in February 2021. In order to arrive at the same, we calculated the weighted average returns of each fund based on its AUM and their respective returns in February 2021. Below is the list of AMCs along with their performance in February 2021.