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Mutual Fund ScreenerFor the quarter ended Sep-17
Mutual Fund Screener – What’s Inside
01Industry
Size
03Inflow Outflow
Analysis
04Sector
Update
06Industry
Insights
07Regulatory
Update
05Category
Performance
02Investor
Trends
INDUSTRY SIZESection I
Industry QAAUM up 7% - Rs. 143,078 crore added in Q2FY18
Industry Quarterly Average Assets UnderManagement (QAAUM) grew for the 16th
consecutive quarter in Q2FY18
The 7.3% quarterly growth in industryassets was driven by sustained inflows inequity schemes through SystematicInvestment Plans (SIPs) and mark tomarket gains
Growth in QAAUM for the Quarter Ended Sep-17
AMCs Range
Top 5 4% to 12%
Next 10 -2% to 19%
Rest -65% to 30%
Source: AMFI; ICRA Online Research. AMC list as of Sep-17 QAAUM
ICRA Online Limited 4
Sep-17,
2,094,852 Jun-17,
1,951,775
Sep-16,
1,610,729
0
550,000
1,100,000
1,650,000
2,200,000
Sep-17 Jun-17 Sep-16
QA
AU
M (
In R
s. C
rore
)
Mutual Fund Industry (QAAUM)
Source: AMFI, ICRA Online Research; QAAUM – Quarterly
Average Assets Under Management
Top 10 AMCs accounted for ~81% of QAAUM
ICRA Online Limited 5
Source: AMFI, ICRA Online Research
0%
3%
6%
9%
12%
0
50,000
100,000
150,000
200,000
250,000
300,000
ICICI
Prudential
Mutual Fund
HDFC Mutual
Fund
Reliance
Mutual Fund
Aditya Birla
Sun Life
Mutual Fund
SBI Mutual
Fund
UTI Mutual
Fund
Kotak
Mahindra
Mutual Fund
Franklin
Templeton
Mutual Fund
DSP
BlackRock
Mutual Fund
Axis Mutual
Fund
% c
ha
ng
e Q
oQ
AU
M (
in R
s. C
rore
)
Top Ten AMCs
Sep-17 Jun-17 % Change QoQ
Smaller AMCs grew at a faster pace
Note: Edelweiss AMC was not included in the list of top 10 fastest growing AMCs as its YoY growth of 260% was fuelled by the acquisition of JP
Morgan AMC
Among the larger AMCs (QAAUM >Rs. 35,000 crore), Kotak Mahindra,DSP BlackRock, Axis, and L&TMutual Fund have shownexceptional growth in assets
ICRA Online Limited 6
QAAUM of six fastest growing AMCs below Rs. 20,000 crore
0%
30%
60%
90%
120%
150%
0
30,000
60,000
90,000
120,000
Ko
tak M
ah
ind
ra M
utu
al F
un
d
DSP
Bla
ckR
oc
k M
utu
al F
un
d
Axis
Mu
tua
l Fu
nd
L&T
Mu
tua
l Fu
nd
Mo
tila
l Osw
al M
utu
al F
un
d
Mira
e A
sse
t M
utu
al F
un
d
Ind
iab
ulls
Mu
tua
l Fu
nd
Ma
hin
dra
Mu
tua
l Fu
nd
IIFL
Mu
tua
l Fu
nd
IIFC
L M
utu
al F
un
d (
IDF)
Yo
Y G
row
th (
In %
)
AU
M (
In R
s. C
rore
)
Top ten fastest growing AMCsSep-17 Sep-16 % Change YoY
Source: AMFI, ICRA Online Research
Private sector JVs (predominantly Indian) managed 58% of Sep-17 QAAUM
ICRA Online Limited 7
Source: AMFI, ICRA Online Research
Note: Year 1 – Sep-17 vs. Sep-16; Year 2 – Sep-16 vs. Sep-15
CategoryIn Rs. Crore Growth
Sep-17 Sep-16 Sep-15 Year 1 Year 2
Bank
Sponsored
Joint Ventures - Predominantly Indian 204,200 144,510 98,722 41.30% 46.40%
Joint Ventures - Predominantly Foreign 11,138 11,703 9,532 -4.80% 22.80%
Joint Ventures - Others 164,011 138,848 113,766 18.10% 22.00%
Institutions Indian 23,504 16,841 11,507 39.60% 46.40%
Private
Sector
Indian 294,976 206,252 166,808 43.00% 23.60%
Joint Ventures - Predominantly Indian 1,218,191 934,769 747,691 30.30% 25.00%
Foreign 137,637 114,629 113,118 20.10% 1.30%
Joint Ventures - Predominantly Foreign 16,004 18,704 26,921 -14.40% -30.50%
Joint Ventures - Others 25,191 24,473 2,366 2.90% 934.60%
ICRA Online Limited 8
INVESTOR TRENDSSection II
MF industry added 38.2 lakh folios in Q2FY18
Total folio count at the end of Sep-17 stood at 6.2 crore, 6.6% higher than the previous quarter,according to data from the Securities and Exchange Board of India (SEBI)
In the last 12 months, 82.3 lakh new folios were added to the Equity and ELSS categories, suggestingmore investors are opting for equity funds for long-term wealth creation
ICRA Online Limited 9
0 100 200 300 400
Liquid/ Money Market
Gilt
Income
ELSS
Equity
Balanced
GOLD ETF
Other ETFs
Fund of funds investing…
Folio (In Lakhs)
Category wise Folio Count (In Lakhs)
Sep-16 Jun-17 Sep-17
Source: AMFI, ICRA Online Research
51
2.9
52
0.5
52
8.2
53
7.8
54
3.9
55
4.0
56
1.4
57
1.9
58
2.3 59
4.2 60
8.5 62
0.5
0
3
6
9
12
15
500
525
550
575
600
625
Oc
t-1
6
No
v-1
6
De
c-1
6
Ja
n-1
7
Fe
b-1
7
Ma
r-17
Ap
r-1
7
Ma
y-1
7
Ju
n-1
7
Ju
l-17
Au
g-1
7
Se
p-1
7
On
e m
on
th c
ha
ng
e (
In L
ak
hs)
Fo
lio
(In
La
kh
s)
Folio growth in last 12 months
Folio 1M Change
Source: SEBI, ICRA Online Research
B-15 locations generated 18% of industry AUM in Sep-17
Assets in top 15 cities (referred to as T-15)grew 28% YoY, while that in smaller towns(referred to as B-15 locations) expanded 39%
Activity in B-15 locations has increased inrecent years
Improved distribution and regulatorychanges to the fee structure have broughtmore people into the mutual fund fold
ICRA Online Limited 10
Source: AMFI, ICRA Online Research
AUM garnered by different channels
Sep-17 Sep-16
T-15 B-15 T-15 B-15
Associate Distributor 6% 15% 5% 12%
Direct Plan 46% 21% 44% 26%
Non-Associate
Distributor48% 64% 51% 62%
0
500,000
1,000,000
1,500,000
2,000,000
Sep-17 Sep-16
AU
M (
In R
s. C
rore
)
Growth in assets in T-15/B-15 locations
T15 B15
36%
58%
30%51%
64%
42%
70%49%
0%20%40%60%80%
100%
T15 B15 T15 B15
Sep-17 Sep-16
Equity/Non-equity asset mix in T-15/B-15
Locations
Equity Non-equity
INFLOW OUTFLOWANALYSIS
Section III
Investors poured Rs. 1.09 lakh crore in mutual funds in Q2FY18
Investors preferred Equities (including ELSS)and Balanced funds over Income andLiquid funds, which could be on accountof low yields on money market and fixedincome investments
ICRA Online Limited 12
-50,000 -20,000 10,000 40,000 70,000
Income
Infrastructure Debt Fund
Equity
Balanced
Liquid/Money Market
Gilt
ELSS - Equity
Gold ETF
Other ETFs
Fund Of Funds Investing…
In Rs. Crore
Category-wise Net Inflow/Outflow
Q2FY17 Q1FY18 Q2FY18
Source: AMFI, ICRA Online Research
108,601
93,400
144,123
0
30,000
60,000
90,000
120,000
150,000
180,000
Q2FY18 Q1FY18 Q2FY17
In R
s. C
rore
Industry-wide Net Inflow/Outflow
Source: AMFI, ICRA Online Research
Robust retail participation led to high infusion in Equity funds
Equity funds (including ELSS) saw net inflow of Rs. 52,025 crore in Q2FY18 vis-à-vis Rs. 28,332 crore inQ1FY18
In FY17, equity funds (including ELSS) witnessed inflows in every month with net inflows amounting toRs. 98,699 crore
Equity funds are becoming popular long-term investment avenues and people are investing mainlythrough SIPs
ICRA Online Limited 13
-5,000
0
5,000
10,000
15,000
20,000
25,000
Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17
In R
s. C
rore
Equity Net Inflow/Outflow
Source: AMFI, ICRA Online Research; Equity includes ELSS funds
SECTOR UPDATE Section IV
MFs continued to bet on Financial Services sector with more than 30% exposure
ICRA Online Limited 15
Over the year, three out of the top five sectors witnessed more than 50% increase in exposure(Energy ~70%, Financial Services ~60% and Consumer Goods ~53%)
Top five sectors constituted more than 65% of the total equity AUM
0
7,000
14,000
21,000
28,000
35,000
Financial Services Energy Automobile Consumer Goods IT
Eq
uity
AU
M (
In R
s. C
rore
)
Equity exposure of Top 5 AMCs in Top 5 sectors (Sep-17)
ICICI Prudential Mutual Fund HDFC Mutual Fund Reliance Mutual Fund Aditya Birla Sun Life Mutual Fund SBI Mutual Fund
Source: AMFI, ICRA Online Research
Highest inflow witnessed in Metal and Paper Sectors
ICRA Online Limited 16
Over the year, highest inflow was seen in Metal (156%), followed by Paper (92%) and Healthcare
Services (83%) sectors
92%
156%
70%60%
37%
0%
40%
80%
120%
160%
0
60,000
120,000
180,000
240,000
Paper Metals Energy Financial Services Industrial Manufacturing
% C
ha
ng
e Y
oY
In R
s. C
rore
Sector wise Inflow in Q2FY18
Sep-17 Sep-16 % change YoY
Source: AMFI, ICRA Online Research, Net-inflow has been calculated using the market value of the holdings
CATEGORY PERFORMANCESection V
Equity-oriented mutual funds continued to find favour
Key drivers:
Benchmark index Sensex hovering above the 31,000 mark
Implementation of goods and service tax creating a conducive environment for investors
Expansion of Index of Industrial Production in Jul and Aug
Positive impact of investor education programmes and soft performance of other asset classes
ICRA Online Limited 18
Source: ICRA Online Research; Data as of Sep-17; *Compound Annualised returns
16.9
5
13.4
1 17.6
0
10.4
7
17
.06
13.0
1 17.4
0
9.8
2
14.8
6
9.0
0 13.3
8
0.0
0
14.2
3
7.9
6 12
.29
6.5
1
17.0
7
12
.61
15.8
7
9.7
9
0.00
10.00
20.00
30.00
1 Year 3 Years 5 Years 10 Years
Re
turn
s (i
n %
)
Performance* of Equity-Oriented Mutual Fund Categories
Diversified Funds ELSS Global Funds Index Funds Sector Funds
Short term funds attracted investors amid rising savings account deposits
ICRA Online Limited 19
Source: ICRA Online Research; Data as of Sep-17; *Compound annualised returns for periods ≥1 year; Simple annualised returns for <1 year
6.5
0
6.4
9
6.4
7 7.5
6
7.0
3
7.1
5
7.0
5 8.0
3
6.8
1
7.6
5
7.0
8 8.6
3
0.00
2.50
5.00
7.50
10.00
3 Months 6 Months 1 Year 3 Years
Re
turn
s (i
n %
)
Performance* of Short-Term Debt Oriented
Categories
Liquid Funds Ultra Short-Term Funds Short-Term Funds
7.1
7
11.0
4
9.4
9
8.7
4
7.3
2 9.4
2
8.7
3
7.9
8
0.00
3.50
7.00
10.50
14.00
1 Year 3 Years 5 Years 10 Years
Re
turn
s (i
n %
)
Performance* of Long-Term Debt Oriented
Categories
Gilt Fund Income Fund
Short term funds became the cynosure of market participants amid rising savings accountdeposits, triggered by demonetisation
Long term papers posted subdued returns as five-month high retail inflation lowered probability ofa rate-cut by MPC (Monetary Policy Committee)
INDUSTRY INSIGHTSSection VI
MFs drove country’s equity markets rather than foreign investors
ICRA Online Limited 21
Source: ICRA Online Research
140,033
79,723
110,540
-14,171
52,977
-5,279
-22,678 -20,925
40,281
65,041 54,912
76,906
-50,000
0
50,000
100,000
150,000
FY13 FY14 FY15 FY16 FY17 FY18TD
In R
s. C
rore
FPI/FII & Mutual Fund Investment Trends in Equity Markets
FPI/FII MF
Large Caps commanded the largest share of assets
ICRA Online Limited 22
Source: ICRA Online Research
*On the basis of MFI market cap classification, only equity diversified funds were considered for analysis
0%
20%
40%
60%
80%
100%
Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17
In %
Investment Across Market Caps*
Large Cap Mid Cap Small Cap Debt & Others
Instrument allocation pattern in debt segment
Source: ICRA Online Research
ICRA Online Limited 23
70.9
7%
3.7
6%
2.6
6%
6.3
2%
8.3
0%
0.0
0%
1.8
7%
0.0
2% 5.4
3%
0.6
7%
60.7
0%
2.0
0%
10.2
4%
6.5
9%
14.3
2%
0.0
0%
1.2
9%
4.5
3%
0.3
3%
0.0
0%
70.6
2%
3.1
5%
2.6
2% 7.1
2%
8.4
9%
0.0
0% 1
.35
%
0.0
2% 5.6
1%
1.0
3%
0%
25%
50%
75%
Bo
nd
/De
be
ntu
re
Ca
sh &
Eq
uiv
ale
nts
CD
CP
Gilt
Go
ld
Oth
ers
REIT
s &
InvIT
s
SD
L
T B
ill
In %
Sep-17 Sep-16 Jun-17
Average maturity did not change much in Q2FY18
ICRA Online Limited 24
Source: ICRA Online Research
0
5
10
15
Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17
Ave
rag
e M
atu
rity
(In
Ye
ars
)
Average Maturity Trends in Income, Gilt Long-Term & Gilt Short-Term Funds
Income Fund Gilt Long-Term Gilt Short-Term
Analysis of cash holding in last 12 months
ICRA Online Limited 25
Source: ICRA Online Research
Note: Numbers in the table denote the categories’ average percentage exposure to cash & cash equivalents; red denotes highest whereas
dark green denotes lowest
Category Sep-17 Aug-17 Jul-17 Jun-17 May-17 Apr-17 Mar-17 Feb-17 Jan-17 Dec-16 Nov-16 Oct-16
Equity 2.9 2.7 2.6 2.4 2.4 2.2 2.4 2.3 2.4 2.6 2.2 2.2
Specialty 0.1 0.0 0.1 0.0 0.1 0.1 0.0 0.1 0.1 0.1 0.0 0.0
Gilt 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.1 0.1
Liquid 16.5 18.8 17.8 17.1 20.2 19.7 16.3 19.5 18.7 16.2 16.7 17.4
Balanced 0.4 0.3 0.3 0.3 0.3 0.2 0.2 0.3 0.3 0.3 0.1 0.2
ETF 0.3 0.3 0.3 0.4 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Fund of Funds 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Dynamic/Asset
Allocation0.3 0.3 0.4 0.3 0.3 0.3 0.3 0.3 0.4 0.3 0.2 0.3
Debt 5.2 6.6 6.8 5.5 7.1 7.2 5.6 8.7 8.2 8.2 8.8 9.1
REGULATORY UPDATESection VII
ICRA Online Limited Source: Media Reports
SEBI categorised MF schemes under five different heads -- equity, debt, hybrid,
solution-oriented and others -- in an effort to end duplication of schemes
Association of Mutual Funds in India announced mutual funds will not be
allowed to open any new folio without obtaining customers' Aadhaar
numbers, with effect from Jan 1, 2018
SEBI asked MF houses to benchmark equity schemes against total return
index as the measure will exhibit a truer picture of the scheme’s
performance against its benchmark
The government introduced a new Central Public Sector Enterprise ETF
named Bharat 22 ETF (B22E) to be managed by ICICI Prudential Asset
Management Co. Ltd. It will track the performance of 22 select
companies disinvested by the government
Regulator remained vigilant
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