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Mutual Fund ScreenerFor the quarter ended Jun-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. 122,191 crore added in 1st quarter of FY18
Industry Quarterly Average Assets Under Management (QAAUM) grew for the 15th consecutive quarter in Q1FY18
The 6.7% quarterly growth in industry assets was driven by sustained inflows in equity schemes
through Systematic Investment Plans (SIPs) and mark to market gains
Growth in QAAUM for the Quarter Ended June-17
AMCs Range
Top 5 5% to 8%
Next 10 -1% to 13%
Rest -70% to 350%
Source: AMFI; ICRA Online Research. AMC list as of Jun-17 QAAUM
ICRA Online Limited 41AMFI
In the last decade, annual AUM of the MF industry
has grown five times and is expected to touch the
magical figure of Rs. 94 lakh crore by 20251
Jun-17,
1,951,775 Mar-17,
1,829,583
Jun-16,
1,441,027
0
500,000
1,000,000
1,500,000
2,000,000
Jun-17 Mar-17 Jun-16
QA
AU
M (
In R
s. C
rore
)
Mutual Fund Industry (QAAUM)
Source: AMFI, ICRA Online Research
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
ICICI
Prudential
Mutual
Fund
HDFC
Mutual
Fund
Reliance
Mutual
Fund
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
Qo
QG
row
th (
In %
)
AU
M (
In R
s. C
rore
)
Top Ten AMCs
Jun-17 Mar-17 QoQ
Smaller AMCs grew at a faster pace
Edelweiss AMC was not included in the list of top 10 fastest growing AMCs as its YoY growth of 258% 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&T
Mutual Fund have shown
exceptional growth in assets
ICRA Online Limited 6
0%
100%
200%
300%
400%
0
30,000
60,000
90,000
120,000IIF
CL
Mu
tua
l Fu
nd
(ID
F)
Mira
e A
sse
t M
utu
al
Fu
nd
IIFL
Mu
tua
l Fu
nd
Mo
tila
l O
swa
l Mu
tua
l
Fu
nd
LIC
Mu
tua
l Fu
nd
DSP
Bla
ckR
oc
k M
utu
al
Fu
nd
Ind
iab
ulls
Mu
tua
l Fu
nd
Ko
tak M
ah
ind
ra M
utu
al
Fu
nd
L&T
Mu
tua
l Fu
nd
Axis
Mu
tua
l Fu
nd
Yo
Y G
row
th (
In %
)
AU
M (
In R
s. C
rore
)
Top ten fastest growing AMCs
Jun-17 Jun-16 YoY
Source: AMFI, ICRA Online Research
Kotak Mahindra AMC crossed the
milestone of Rs. 1 lakh crore in the
Q1FY18 and became the seventh
AMC to join the Rs. 1 lakh crore
AUM group
QAAUM of five fastest growing
AMCs below Rs. 20,000 crore
Private sector joint ventures (predominantly Indian) manage 58% of QAAUM
ICRA Online Limited 7
Bank Sponsored_JV_Predominantly
Foreign
1%
Bank Sponsored_JV_Predominantly Indian
9%
Bank Sponsored_Others
8%
Institutions_Indian
1%
Private Sector_Foreign
7%
Private Sector_Indian
14%
Private
Sector_JV_Others
1%
Private
Sector_JV_Predominantly
Foreign
Private
Sector_JV_Predominant
ly Indian
58%
Source: AMFI, ICRA Online Research, data as of Jun-17
ICRA Online Limited 8
INVESTOR TRENDSSection II
MF industry added 28.3 lakh folios in 1st quarter of FY18
Total folio count at the end of Jun-17 stood at 5.82 crore, 5.1% higher than the previous quarter,
according to data from the Securities and Exchange Board of India (SEBI)
In the last 15 months, 69.1 lakh new folios were added to the Equity and ELSS categories, suggesting
more investors are opting for equity funds for long-term wealth creation
ICRA Online Limited 9
49
2
49
8
50
6
51
3
52
0
52
8 53
8
54
4 55
4
56
1 57
2 58
2
0
5
10
15
20
450
480
510
540
570
600
Ju
l-1
6
Au
g-1
6
Se
p-1
6
Oc
t-16
No
v-1
6
De
c-1
6
Ja
n-1
7
Fe
b-1
7
Ma
r-1
7
Ap
r-1
7
Ma
y-1
7
Ju
n-1
7 On
e m
on
th c
ha
ng
e (
In la
kh
s)
Fo
lio
(In
La
kh
s)
Folio growth in last 12 months
Folio 1M Change
Source: SEBI, ICRA Online Research
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
Jun-16 Mar-17 Jun-17
Source: AMFI, ICRA Online Research
Industry assets equally distributed between individual and institutional
investors; both investor categories showing similar growth trends
In the last five years, total assets attributable to individual and institutional investors grew at
a CAGR of 25.2% and 25.9%, respectively
ICRA Online Limited 10
3.6 4.0 5.6 6.3 8.7
3.5 4.3 5.3 6.0 8.8
0%
20%
40%
60%
80%
100%
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
Individual and Institutional investor composition
Individual Institutional
Source: AMFI; Data pertains to month end
AUM
Individual investor includes Retail and HNI
Institutional investor includes Corporates,
Banks/FIs and FIIs
AUM (In Rs. Lakh Crore)
Individual investors continued to favour equity funds while institutional
investors preferred fixed income funds
As of Mar-17, equity funds formed 53% of the total asset base of individual investors, while debt-
oriented funds made up 85% of the portfolio of institutional investors of which liquid schemes
formed 32%
ICRA Online Limited 11
53%
9%0%
4%
34%Equity Funds
Balanced Funds
Others
Liquid Funds
Debt Funds
14%
1%
0%
32%53%
Equity Funds
Balanced Funds
Others
Liquid Funds
Debt Funds
Source: AMFI; Data as of month end AUM of March 2017
Equity Funds include ELSS and Other ETFs
Debt Funds include Gilt funds
Others include other ETFs and Fund of Funds investing overseas
Individual Institutional
Debt-oriented funds
B-15 locations generated 18% of industry AUM in Jun-17
Assets in top 15 cities (referred to as T-15)
grew 31% YoY, while that in smaller towns
(referred to as B-15 locations) expanded 46%
Activity in B-15 locations has increased in
recent years
Improved distribution and regulatory
changes to the fee structure have brought
more people into the mutual fund fold
ICRA Online Limited 12
Source: AMFI, ICRA Online Research
AUM garnered by different channels
Jun-17 Mar-17
T-15 B-15 T-15 B-15
Associate Distributor 5% 8% 6% 13%
Non-Associate Distributor 50% 68% 48% 64%
Direct Plan 45% 24% 46% 22%
54%
31%
46%
69%
0%
20%
40%
60%
80%
T15 B15
In %
Equity/Non-equity asset mix in T-15/B-15
Locations (as of Jun-17)
Equity Non-Equity
16.4
12.5
3.52.4
0.0
5.0
10.0
15.0
20.0
Jun-17 Jun-16
AU
M (
In R
s. L
ak
h C
rore
)
Growth in assets in T-15/B-15 locations
T-15 B-15
INFLOW OUTFLOWANALYSIS
Section III
Investors poured in Rs. 0.93 lakh crore in mutual funds in the 1st quarter of FY18
Investors preferred equities (including
ELSS) and balanced funds over income
and liquid funds, which could be on
account of low yields on money market
and fixed income investments
ICRA Online Limited 14
-50,000 -25,000 0 25,000 50,000
Income
Infrastructure Debt Fund
Equity
Balanced
Liquid/Money Market
Gilt
ELSS - Equity
Gold ETF
Other ETFs
Fund Of Funds Investing Overseas
In Rs. Crore
Category-wise net inflow/outflow
Q1FY17 Q4FY17 Q1FY18
Source: AMFI, ICRA Online Research
93,400
29,207
90,441
0
30,000
60,000
90,000
120,000
Q1FY18 Q4FY17 Q1FY17
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. 28,332 crore in Q1FY18 vis-à-vis Rs. 9,479 crore in
Q1FY17
In FY17, equity funds (including ELSS) witnessed inflows in every month with net inflows amounting to
Rs. 98,699 crore
Equity funds are becoming popular long-term investment avenues and people are investing mainly
through SIPs
ICRA Online Limited 15
-5,000
0
5,000
10,000
15,000M
ay-1
3
De
c-1
3
Ju
l-1
4
Fe
b-1
5
Se
p-1
5
Ap
r-16
No
v-1
6
Ju
n-1
7
In R
s. C
rore
Equity Net Inflow/Outflow
Source: AMFI, ICRA Online Research; Equity includes ELSS funds
SECTOR UPDATE Section IV
Financial services remained the most preferred sector with more than 30% of
total equity AUM
ICRA Online Limited 17
0
10,000
20,000
30,000
Financial Services Automobile Consumer Goods Energy IT
Eq
uity
AU
M (
In R
s. C
rore
)
Equity exposure in top sectors (Top 5 AMCs)
ICICI Prudential Mutual Fund HDFC Mutual Fund Reliance Mutual Fund Birla Sun Life Mutual Fund SBI Mutual Fund
Source: ICRA Online Research; Data as of Jun 2017
In Q1FY18 highest inflow were seen in Healthcare Services (36.7%), Metals
(23.2%) and Services (17.6%) sectors
ICRA Online Limited 18
36.7
23.2
17.6
16.8
16.6
16.3 15.5
11.9 11.9 11.9
0
10
20
30
40
0
50,000
100,000
150,000
200,000
Healthcare
Services
Metals Services Financial
Services
Fertilisers &
Pesticides
Telecom Construction Paper Cement &
Cement
Products
Automobile
In %
In R
s. C
rore
Sector wise inflow in Q1FY18
Jun-17 Mar-17 % Change QoQ
Source: ICRA Online Research, Net-inflow has been calculated using the market value of the holdings; Top 10 sectors on the basis of QoQ
change (%)
CATEGORY PERFORMANCESection V
Domestic factors positively impacted equity-oriented mutual funds
Markets performed well on the back of strong economic data
Monsoons arrived on time
CPI-based inflation declined, beating expectations; RBI lowered
inflation projections
ICRA Online Limited 20
21
.45
14
.45 18
.65
11
.491
6.4
8
9.0
3 13
.01
19
.83
12
.87 16
.73
10
.85
21
.78
14
.48 18
.52
10
.941
6.3
1
8.6
4
13
.44
7.8
7
0.00
10.00
20.00
30.00
1 Year 3 Year 5 Year 10 Year
Re
turn
s (i
n %
)
Performance* of Equity-Oriented mutual fund categories
Diversified Funds Global Funds Sector Funds ELSS Index Funds
Source: ICRA Online Research; Data as of Jun-17; *Compound Annualized returns
BSE Sensex hovered above
the 31,000 mark
Long-term debt funds continued to outperform
Retail inflation slowed for the second consecutive month in May and remained at its lowest level
in five years; this reinforced expectations that Monetary Policy Committee (MPC) might consider
lowering interest rates in the near term
Markets gained after government officials allayed concerns of high inflation following the
implementation of the Goods and Services Tax from Jul 1, 2017
Geo-political tensions kept investors wary
ICRA Online Limited 21
6.3
6.1 6.5 7
.6
7.1
6.4 7
.4 8.08.6
6.6
8.9
8.9
0
3
6
9
12
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
Source: ICRA Online Research; Data as of Jun-17; *Compound annualised returns for periods ≥1 year; Simple annualised returns for <1 year
10
.3
9.7
9.2
8.1
13
.3
11
.8
10
.0
8.8
0
3
6
9
12
15
1 Year 3 Years 5 Years 10 Years
Re
turn
s (i
n %
)
Performance* of Long-Term Debt Oriented
Categories
Income Funds Gilt Funds
INDUSTRY INSIGHTSSection VI
Gross commission almost doubled for top distributors in last 3 years
Gross commission earned by mutual fund distributors almost doubled from Rs. 2,603 crore in FY14
to Rs. 4,987 crore in FY17, according to AMFI data
Top 10 distributors earned Rs. 2,379 crore commission from the AMCs in FY17, representing 47.72%
of the total commission paid to distributors
In the last three fiscals, average assets under management of top 10 distributors have increased
from Rs. 1.43 lakh crore to Rs. 2.74 lakh crore
ICRA Online Limited 23
2,379
1,726
2,399
1,223
0
500
1,000
1,500
2,000
2,500
FY17 FY16 FY15 FY14
In R
s. C
rore
Commission earned by Top 10 distributors
Source: AMFI, ICRA Online Research
Liquidity analysis of last 12 months
ICRA Online Limited 24
Source: ICRA Online Research
Jun-17 May-17 Apr-17 Mar-17 Feb-17 Jan-17 Dec-16 Nov-16 Oct-16 Sep-16 Aug-16 Jul-16
Equity 2.4 2.4 2.2 2.4 2.3 2.4 2.6 2.2 2.2 1.8 1.9 1.7
Speciality 0.0 0.1 0.1 0.0 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0
Gilt 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.1 0.1 0.0 0.1 0.1
Liquid 17.1 20.2 19.7 16.3 19.5 18.7 16.2 16.7 17.4 17.0 18.9 20.1
Balanced 0.3 0.3 0.2 0.2 0.3 0.3 0.3 0.1 0.2 0.2 0.2 0.2
ETF 0.4 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.5
Fund of Funds 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2
Dynamic/Asset
Allocation0.3 0.3 0.3 0.3 0.3 0.4 0.3 0.2 0.3 0.3 0.3 0.3
Debt 5.5 7.1 7.2 5.6 8.7 8.2 8.2 8.8 9.1 8.3 9.5 9.5
Values in the table denote the category-wise average holdings in cash & cash equivalents. In the table, red denotes highest liquidity (in termsof higher holding of cash & cash equivalents) while dark blue denotes minimum
Instrument allocation pattern in debt segment
Source: ICRA Online Research
ICRA Online Limited 25
2.2
56.7
20.5
6.33.8
8.0
0.4 1.2 0.92.2
56.3
17.4
6.14.7
7.9
0.4 0.7
4.22.3
45.5
23.6
4.7
11.49.7
0.3 0.9 1.6
0
15
30
45
60
Eq
uity
Bo
nd
/
De
be
n
ture
s
GIL
T
Mo
ne
y
Ma
rke
t
CD
CP
Ca
sh
Cu
rre
n
t A
sse
ts
Oth
ers
In %
Jun-17 Mar-17 Jun-16
Average maturity on rising trend post Mar-17; low inflation increased
rate-cut expectations
ICRA Online Limited 26
Source: ICRA Online Research
0
5
10
15
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
In Y
ea
rs
Average Maturity Trends in Income, Gilt Long-Term & Gilt Short-Term Funds
Income Fund Gilt Long-Term Gilt Short-Term
Investments by mutual funds in equity markets exceeded FII inflows in the 1st
quarter of FY18
ICRA Online Limited 27
Source: ICRA Online Research
140,033
79,723
110,540
-14,171
52,977
13,723
-22,678 -20,925
40,281
65,04154,912
28,325
-50,000
0
50,000
100,000
150,000
FY13 FY14 FY15 FY16 FY17 Q1FY18
In R
s. C
rore
FPI/FII and mutual fund investment trends in equity markets
FPI/FII MF
Large-caps commanded the largest share of assets
ICRA Online Limited 28
Source: ICRA Online Research
*Only equity diversified funds were considered for analysis; ICRA Online market cap classification based on Nifty 500
0%
20%
40%
60%
80%
100%
Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
Ma
rke
t C
ap
(In
%)
Investment Across Market Caps*
Large-cap Mid-cap Small-cap Debt & Others
REGULATORY UPDATESection VII
Regulator remained pro-active during the quarter
SEBI mandated 30-day notice
for withdrawal of ratings
SEBI allowed instant
redemption of liquid funds
SEBI asked Credit Rating Agencies (CRAs) to give a
30-day notice before withdrawal of ratings in case of
open-ended mutual funds. The decision was taken in
consultation with CRAs and representations received
from the industry. SEBI said the rule is for open-ended
mutual fund schemes as they are continuous in nature
with no specified maturity period.
SEBI allowed MF houses to provide instant redemption
on liquid funds. AMCs can offer instant access facility
(through online mode) of up to Rs. 50,000 or 90% of
folio value, whichever is lower, by applying lower of
previous day Net Asset Value (NAV) or prospective
NAV. SEBI added that AMCs would not be allowed to
borrow for meeting the redemption requirement.
ICRA Online Limited 30
Source: Media Reports
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