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Mutual Fund ScreenerFor the quarter ended Sep -18
Mutual Fund Screener – What’s Inside
01Industry
Size
03Inflow Outflow
Analysis
04Sector
Update
02Investor
Trends
06Industry
Insights
0705Category
Performance
Regulatory
Update
INDUSTRY SIZESection I
Industry QAAUM up 4% QoQ to Rs. 24.31 lakh crore in Q2FY19
Industry Quarterly Average Assets UnderManagement (QAAUM) grew for the 20th
consecutive quarter in Q2FY19
Tailwinds for the industry include:
Strong retail participation especially fromB30 cities. Investor awareness campaignssuch as “Mutual Funds Sahi Hai”
Significant increase in SIP accounts
Growth Trend of AMCs for the Quarter ended Sep-18
AMCs Range
Top 5 0% to 9%
Next 10 0% to 11%
Rest -6% to 26%
Source: AMFI, ICRA Online Research
Note: QoQ growth of QAAUM as of Sep-18
ICRA Online Limited 4
Rs. 90,754 crore added in Q2FY19, up 16% YoY
Sep-17,
2,094,852
Jun-18,
2,340,377
Sep-18,
2,431,131
0
1,000,000
2,000,000
3,000,000
Sep-17 Jun-18 Sep-18
QA
AU
M (
In R
s. C
rore
)
Mutual Fund Industry (QAAUM)
Source: AMFI, ICRA Online Research;
Note: QAAUM – Quarterly Average Assets Under Management
QAAUM of top 10 AMCs between Rs. 0.90 lakh crore and Rs. 3.10 lakh crore
ICRA Online Limited 5
Source: AMFI, ICRA Online Research
-2%
0%
2%
4%
6%
8%
10%
12%
0
70,000
140,000
210,000
280,000
350,000
ICICI
Prudential
Mutual Fund
HDFC Mutual
Fund
Aditya Birla
Sun Life
Mutual Fund
SBI Mutual
Fund
Reliance
Mutual Fund
UTI Mutual
Fund
Kotak
Mahindra
Mutual Fund
Franklin
Templeton
Mutual Fund
DSP Mutual
Fund
Axis Mutual
Fund
Q-o
-Q G
row
th (
In %
)
QA
AU
M (
In R
s. C
rore
)
Top 10 AMCs
Sep-18 Jun-18 % Change QoQ
QAAUM ≥ Rs. 3 lakh crore QAAUM ≥ Rs. 2 lakh
crore and < Rs. 3 lakh crore
QAAUM ≥ Rs. 1 lakh crore and <
Rs. 2 lakh crore
Smaller AMCs grow at a faster pace, ranging from ~35% to 100%
ICRA Online Limited 6
QAAUM of eight fastest growing AMCs below Rs. 25,000 crore
Among the larger AMCs (QAAUM > Rs. 35,000 crore), SBI Mutual Fund and L&T Mutual Fund hasshown tremendous growth in assets
0%
25%
50%
75%
100%
125%
0
70,000
140,000
210,000
280,000IIF
L M
utu
al
Fu
nd
Ma
hin
dra
Mu
tua
l
Fu
nd
Mira
e A
sse
t
Mu
tua
l
Fu
nd
Ed
elw
eis
s
Mu
tua
l
Fu
nd
PP
FA
S
Mu
tua
l
Fu
nd
Mo
tila
l
Osw
al
Mu
tua
l
Fu
nd
IL&
FS
Mu
tua
l
Fu
nd
(ID
F)
L&T
Mu
tua
l
Fu
nd
BO
I A
XA
Mu
tua
l
Fu
nd
SB
I M
utu
al
Fu
nd
Yo
Y G
row
th (
In %
)
QA
AU
M (
In R
s. C
rore
)
Top 10 Fastest Growing AMCs
Sep-18 Sep-17 % Change YoY
Source: AMFI, ICRA Online Research
Private sector JVs (predominantly Indian) manage ~50% of Q2FY19 QAAUM
ICRA Online Limited 7
Source: AMFI, ICRA Online Research
Note: QoQ – Q2FY19 vs Q1FY19; YoY – Q2FY19 vs Q2FY18
CategoryAs a % of Q2FY19 QAAUM
QAAUM (In Rs. Crore) Growth
Q2FY19 Q1FY19 Q2FY18 QoQ YoY
Bank Sponsored
Joint Ventures - Predominantly Indian
11.5% 278,656 256,573 208,011 8.6% 34.0%
Joint Ventures - Predominantly Foreign
0.6% 13,564 12,240 11,138 10.8% 21.8%
Others 7.2% 175,907 163,723 160,200 7.4% 9.8%
Institutions Indian 0.9% 21,064 21,057 23,504 0.0% -10.4%
Private Sector
Indian 21.8% 529,156 503,111 438,177 5.2% 20.8%
Joint Ventures - Predominantly Indian
49.5% 1,203,315 1,185,923 1,074,010 1.5% 12.0%
Foreign 6.9% 167,048 156,572 137,637 6.7% 21.4%
Joint Ventures - Predominantly Foreign
0.8% 19,721 18,040 16,004 9.3% 23.2%
Joint Ventures - Others 0.9% 22,700 23,137 25,191 -1.9% -9.9%
ICRA Online Limited 8
INVESTOR TRENDSSection II
Q2FY19 sees 32.6 lakh new folios; Equity remains the most popular category
As per SEBI data, total folio count at the end of Sep-18 was 7.8 crore, up 4.4% from the previousquarter
Out of the 32.6 lakh new folios added in Q2FY19, 29.5 lakh were in the Equity category (includingELSS)
ICRA Online Limited 9
0 125 250 375 500
Liquid/ Money Market
Gilt
Income
ELSS
Equity
Balanced
Gold ETF
Other ETFs
FoF investing overseas
Folio Count (In Lakhs)
Category-wise Folio Count (In Lakhs)
Sep-18 Jun-18 Sep-17
Source: AMFI, ICRA Online Research
63
1.7
64
9.2
66
4.9
68
3.3
69
9.0
71
3.5
72
1.9
73
4.6
74
6.3
75
4.9
76
5.7
77
8.9
0
5
10
15
20
500
600
700
800
Oc
t-1
7
No
v-1
7
De
c-1
7
Ja
n-1
8
Fe
b-1
8
Ma
r-18
Ap
r-1
8
Ma
y-1
8
Ju
n-1
8
Ju
l-18
Au
g-1
8
Se
p-1
8 1-M
on
th C
ha
ng
e (
In L
ak
hs)
Fo
lio
Co
un
t (I
n L
ak
hs)
Folio Growth in Last 12 Months
Folio 1-Month Change
Source: SEBI, ICRA Online Research
B30 locations generate ~14% of industry assets in Sep-18
The country’s smaller towns or B30 (beyondtop 30 cities) locations accounted for 14.7%of the total industry AUM at the end of
Sep-18
SEBI has expanded the scope of T15/B15locations to T30/B30 from the beginning ofFY19
ICRA Online Limited 10
Source: AMFI, ICRA Online Research
AUM Garnered by Different Channels
Sep-18 Aug-18
T30 B30 T30 B30
Associate Distributor 6% 19% 6% 19%
Direct Plan 44% 17% 45% 18%
Non-Associate
Distributor50% 64% 49% 63%
Sep-18,
2,074,347
Aug-18,
2,112,410
Sep-18,
357,003
Aug-18,
357,667
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Sep-18 Aug-18
AU
M (
In R
s. C
rore
)
Growth in Assets in T30/B30 Locations
T30 B30
42%
66%
42%
65%58%
34%
58%
35%
0%
25%
50%
75%
100%
T30 B30 T30 B30
Sep-18 Aug-18
Equity/Non-equity Asset Mix in T30/B30 Locations
Equity Non-equity
INFLOW OUTFLOWANALYSIS
Section III
Investors pour about Rs. 29,000 crore in Equity mutual funds in Q2FY19
In Q2FY19, net inflows in the Equitycategory (including ELSS) was Rs.28,999 crore compared with Rs. 32,181crore in Q4FY18
Cumulative SIP contribution has beenRs. 22,939 crore for Q2FY19 vis-à-vis Rs.21,548 crore in Q1FY19
ICRA Online Limited 12
-75,000 -40,000 -5,000 30,000 65,000 100,000 135,000
Income
Infrastructure Debt Fund
Equity
Arbitrage Funds
Balanced
Liquid/Money Market
Gilt
Elss - Equity
Gold Etf
Other Etfs
FoFs Investing Overseas
In Rs. Crore
Category-wise Net Inflow/Outflow
Q2FY19 Q1FY19 Q2FY18
Source: AMFI, ICRA Online Research
-88,138
133,903
108,601
-100,000
-50,000
0
50,000
100,000
150,000
Q2FY19 Q1FY19 Q2FY18
In R
s. C
rore
Industry-wide Net Inflow/Outflow
Source: AMFI, ICRA Online Research
Robust SIP inflows seen from retail investors
Equity funds (including ELSS) witnessed lower net inflows in Q2FY19 vis-a-vis Q1FY19, as equitymarkets remained volatile
ICRA Online Limited 13
-5,000
1,000
7,000
13,000
19,000
25,000
Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18
In R
s. C
rore
Equity Net Inflow/Outflow
Source: AMFI, ICRA Online Research;
Note: Equity includes ELSS funds
SECTOR UPDATE Section IV
Top five sectors constitute about 52% of the total equity AUM
ICRA Online Limited 15
AMCs continue to bet on Banks and Finance sectors with ~ 12% of the total equity AUM
Riding on a weak rupee, Pharmaceuticals and Software sectors remained in the top five
0
8,000
16,000
24,000
32,000
Banks Software Finance Consumer Non Durables Pharmaceuticals
Eq
uity
AU
M (
In R
s. C
rore
)
Equity Exposure of Top Five AMCs in Top 5 Sectors (Sep-18)
HDFC Mutual Fund SBI Mutual Fund ICICI Prudential Mutual Fund Reliance Mutual Fund Aditya Birla Sun Life Mutual Fund
Source: AMFI, ICRA Online Research
Software sector sees highest growth in inflow in percentage terms
ICRA Online Limited 16
-15%
20%
55%
90%
0
37,000
74,000
111,000
148,000
185,000B
an
ks
So
ftw
are
Fin
an
ce
Co
nsu
me
r
No
n
Du
rab
les
Ph
arm
ac
eu
ti
ca
ls
Pe
tro
leu
m
Pro
du
cts
Au
to
Co
nst
ruc
tio
n
Pro
jec
t
Po
we
r
Au
to
An
cill
arie
s
% C
ha
ng
e Y
oY
In R
s. C
rore
Sector-wise Inflow in Sep-18 Vis-a-vis Jun-18 and Sep-17Sep-18 Jun-18 Sep-17 % change - QoQ % change - YoY
Source: AMFI, ICRA Online Research
Note: Only top-10 sectors considered
CATEGORY PERFORMANCESection V
Performance of Equity mutual funds stays subdued over the year
Performance of equity-oriented mutual funds remained under pressure as Indian equity markets slumped
to more than two-month low in Sep-18
Slide in rupee, banks’ management issues, liquidity concerns, surge in crude oil prices and global trade
war concerns pressured markets
ICRA Online Limited 18
4.7
9.4
15
.5
12.4
-3.4
8.9
23.4
17.0
0.9
10.7
19.2
13.8
-6.6
10.8
25.8
15.7
2.6
10.1
18.4
14.6
2.7
11.0
18.3
-0.7
11.2
20.6
15.8
2.4
10.3
18.3
13.6
-10
-5
0
5
10
15
20
25
30
1 Year 3 Year 5 Year 10 Year
Re
turn
s (I
n %
)
Performance* of Equity-Oriented Mutual Fund Categories
Large Cap Fund Mid Cap Fund Large & Mid Cap Fund Small cap Fund Multi Cap Fund Focused Fund Value Fund ELSS
Source: ICRA Online Research;
Note: *Compound Annualized returns; Data as of Sep-18
Hybrid categories post muted performance in shorter tenures
ICRA Online Limited 19
2.5
8.9
15
.4
12
.3
1.7
6.4
9.4
8.8
4.7
8.4
14.2
12.3
3.3
6.9
8.1
7.7
5.6 6
.1 7.0
4.2
7.5
10.0 1
1.1
0
4
8
12
16
1 Year 3 Year 5 Year 10 Year
Re
turn
s (I
n %
)
Performance* of Hybrid Mutual Fund Categories
Aggressive Hybrid Fund Conservative Hybrid Fund
Dynamic Asset Allocation or Balanced Advantage Equity Savings
Arbitrage Fund Multi Asset Allocation
Source: ICRA Online Research;
Note: *Compound Annualized returns; Data as of Sep-18
Short-term funds perform better than their long-term peers
ICRA Online Limited 20
Key drivers:
Gilt funds underperformed over the year as rising global crude oil prices, a plunging rupee and increase in
domestic inflationary pressures pushed up bond yields
5.1
6.1
4.9
3.7 4
.3 4.9 5
.7
4.1
1.0
5.8
3.7
3.0
2.7
1.9
6.4
5.1
-0.4
6.1
4.3 4.4
3.4
1.4
6.6
5.85.9
7.3
6.8 7
.5
6.5
6.2 7
.0 7.0
-2
0
2
4
6
8
Gilt Fund Low Duration
Fund
Short Duration
Fund
Credit Risk Fund Corporate
Bond Fund
Dynamic Bond Liquid Fund Ultra Short
Duration Fund
Re
turn
s (I
n %
)
Performance* of Debt Funds
3 Months 6 Months 1 Year 3 YearsSource: ICRA Online Research
Note: *Compound annualised returns for periods ≥1 year; Simple annualised returns for <1 year; Data as of Sep-18
Long Term Medium Term Short Term
INDUSTRY INSIGHTSSection VI
Outflows in Sep-2018 surpass inflows seen in the first two months of Q2FY19
ICRA Online Limited 22
79,723
110,540
-14,171
52,977
26,021
-26,148-20,925
40,281
65,04154,912
140,042
50,085
-50,000
0
50,000
100,000
150,000
FY14 FY15 FY16 FY17 FY18 FY19 TD
In R
s. C
rore
FPI/FII & Mutual Fund Investment Trends in Equity Markets
FPI/FII MF
Source: ICRA Online Research
Instrument allocation pattern in debt segment
ICRA Online Limited 23
0%
25%
50%
Bond/
Debenture
CP CD Gilt SDL T Bill Others REITs & InvITs Cash &
Equivalents
In %
Sep-18 Jun-18 Mar-18
Source: ICRA Online Research
Average maturity trend in last one year
ICRA Online Limited 24
0
5
10
15
Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18
Ave
rag
e M
atu
rity
(In
Ye
ars
)
Average Maturity Trends in Corporate Bond Fund, Dynamic Bond, Gilt Fund, Gilt Fund with
10-Year Constant Duration
Corporate Bond Fund Dynamic Bond Gilt Fund Gilt Fund with 10 Year Constant Duration
Source: ICRA Online Research
REGULATORY UPDATESection VII
Regulator remains vigilant (1 of 2)
ICRA Online Limited 26
SEBI lowers the fees that mutual
funds charge SEBI cut expense ratio for open-ended equity schemes based
on AUM size. Total expense ratio for schemes AUM of up to Rs.
500 crore will be 2.25% every year. In addition, SEBI has barred
upfront commissions to distributors
All scheme-related expenses
shall be paid from the scheme
only SEBI mandated that all scheme-related expenses, including
commissions, shall be paid only from the scheme and not from
the books of the AMCs. The regulator has done away with
upfront commission of 1% that was allowed earlier. Going
forward, fund houses will have to pay commission through a full
trail fee model in all schemes
Source: Media Reports
Regulator remains vigilant (2 of 2)
ICRA Online Limited 27
Fund houses can charge
additional 30 bps on expense for
B30 cities only on retail AUM Additional expense allowed for penetration in B-30 cities shall
be based only on inflows from retail investors. Industry can
continue to charge additional TER on retail and HNI assets until
SEBI releases a definition on retail investors. Fund houses can
incentivize their distributors with additional B30 commission only
through trail model as against upfront mode
AMFI discontinues online
registration and renewal of
ARN AMFI discontinued mutual fund distributors’ online registration
and renewal of AMFI Registration Number (ARN) with Aadhaar
number following the Supreme Court’s verdict on Aadhaar.
The Unique Identification Authority of India had asked AMFI,
R&T agents and KYC registration agencies to give it in writing
that they have stopped using Aadhaar-based authentication
Source: Media Reports
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