mutual fund screener · pdf filesmaller amcs grow at a faster pace among the larger amcs...
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Mutual Fund ScreenerFor the quarter ended Dec-17
Mutual Fund Screener – What’s Inside
01Industry
Size
03Inflow Outflow
Analysis
04Sector
Update
06Industry
Insights
07AMFI
Proposals
05Category
Performance
02Investor
Trends
08Regulatory
Update
INDUSTRY SIZESection I
Industry QAAUM up 7% - crosses Rs. 22 lakh crore
Industry Quarterly Average Assets UnderManagement (QAAUM) grew for the 17th
consecutive quarter in Q3FY18
The 6.8% quarterly growth in industryassets was driven by sustained inflows inequity schemes through both lumpsumand Systematic Investment Plans (SIPs)and mark to market gains
Growth in QAAUM for the Quarter Ended Dec-17
AMCs Range
Top 5 5% to 9%
Next 10 -4% to 14%
Rest -7% to 26%
Source: AMFI; ICRA Online Research
Note: AMC list as of Dec-17 QAAUM
ICRA Online Limited 4
Dec-17,
2,236,717 Sep-17,
2,094,852
Dec-16,
1,693,339
0
600,000
1,200,000
1,800,000
2,400,000
Dec-17 Sep-17 Dec-16
QA
AU
M (
In R
s. C
rore
)
Mutual Fund Industry (QAAUM)
Source: AMFI, ICRA Online Research;
Note: QAAUM – Quarterly Average Assets Under Management
Rs. 141,865 crore added in Q3FY18
Top 10 AMCs account 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
Qo
Q G
row
th (
In %
)
AU
M (
In R
s. C
rore
)
Top Ten AMCs
Dec-17 Sep-17 % Change QoQ
Smaller AMCs grow at a faster pace
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
0.00%
25.00%
50.00%
75.00%
100.00%
125.00%
0
25,000
50,000
75,000
100,000
Ko
tak M
ah
ind
ra
Mu
tua
l Fu
nd
DSP
Bla
ckR
oc
k
Mu
tua
l Fu
nd
Axis
Mu
tua
l Fu
nd
L&T
Mu
tua
l Fu
nd
Mo
tila
l Osw
al M
utu
al
Fu
nd
Mira
e A
sse
t M
utu
al
Fu
nd
Ed
elw
eis
s M
utu
al
Fu
nd
BO
I A
XA
Mu
tua
l Fu
nd
Ma
hin
dra
Mu
tua
l
Fu
nd
IIFL
Mu
tua
l Fu
nd
Yo
Y G
row
th (
In %
)
AU
M (
In R
s. C
rore
)
Top 10 Fastest Growing AMCs
Dec-17 Dec-16
Source: AMFI, ICRA Online Research
Private sector JVs (predominantly Indian) manage 55% of Q3FY18 QAAUM
ICRA Online Limited 7
Source: AMFI, ICRA Online Research
Note: Represents change in contribution to total QAAUM from the year ago period
Year 1 – Q3FY18 vs. Q3FY17; Year 2 – Q3FY17 vs. Q3FY16
Category
As a % of
Q3FY18
QAAUM
QAAUM (In Rs. Crore) Growth
Q3FY18 Q3FY17 Q3FY16 Year 1 Year 2
Bank
Sponsored
Joint Ventures - Predominantly
Indian10.0% 222,784 153,304 109,921 45.32% 39.47%
Joint Ventures - Predominantly
Foreign0.5% 11,085 10,785 9,255 2.78% 16.53%
Others 7.5% 167,956 140,206 116,369 19.79% 20.48%
Institutions Indian 1.0% 22,756 18,421 12,727 23.53% 44.74%
Private Sector
Indian 17.8% 399,041 285,452 221,604 39.79% 28.81%
Joint Ventures - Predominantly
Indian54.8% 1,226,832 934,105 716,624 31.34% 30.35%
Foreign 6.5% 144,893 111,775 98,460 29.63% 13.52%
Joint Ventures - Predominantly
Foreign0.8% 17,877 13,538 13,512 32.05% 0.19%
Joint Ventures - Others 1.1% 23,493 24,807 2,163 -5.30% 1046.65%
ICRA Online Limited 8
INVESTOR TRENDSSection II
MF industry adds 44.4 lakh folios in Q3FY18
As per data from SEBI, total folio count at the end of Dec-17 stood at 6.6 crore, 7.2% higher than theprevious quarter
The mutual fund industry added close to 44.4 lakh new folios in Q3FY18 out of which 35.1 lakh werein the Equity category (including ELSS)
ICRA Online Limited 9
0.0 100.0 200.0 300.0 400.0
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)
Dec-16 Sep-17 Dec-17
Source: AMFI, ICRA Online Research
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
63
1.7
64
9.2
66
4.9
0
5
10
15
20
500.0
540.0
580.0
620.0
660.0
700.0
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
Oc
t-1
7
No
v-1
7
De
c-1
7
1 M
on
th C
ha
ng
e (
in la
kh
s)
Fo
lio
(In
La
kh
s)
Folio growth in last 12 months
Folio 1 Month Change
Source: SEBI, ICRA Online Research
B-15 locations generate 19% of industry assets in Dec-17
The country’s smaller towns or B15 (beyondtop 15 cities) locations accounted for 18.6%of the total industry AUM at the end of
Dec-17
In the last 12 months, B15 towns havewitnessed AUM growth of 47.2% or Rs. 1.35lakh crore to reach Rs. 4.20 lakh crore
ICRA Online Limited 10
Source: AMFI, ICRA Online Research
AUM Garnered by Different Channels
Dec-17 Dec-16
T-15 B-15 T-15 B-15
Associate Distributor 6% 16% 6% 13%
Direct Plan 45% 20% 45% 25%
Non-Associate
Distributor49% 64% 50% 62%
40%60%
29%49%
60%40%
71%51%
0%25%50%75%
100%
T15 B15 T15 B15
Dec-17 Dec-16
Equity/Non-equity Asset Mix in T-15/B-15
Locations
Equity Non-equity
Dec-17,
1,840,442Dec-16,
1,420,525
Dec-17,
420,256Dec-16,
285,572
0
500,000
1,000,000
1,500,000
2,000,000
Dec-17 Dec-16
AU
M (
In R
s. C
rore
)
Growth in Assets in T-15/B-15 Locations
T15 B15
Individual investors form a bigger portion of industry assets; institutional
category growing at a slightly slower rate
In the last four years, total assets attributable to individual and institutional investors grew ata CAGR of 30.5% and 22.2%, respectively
ICRA Online Limited 11
Source: AMFI, ICRA Online Research;
Note: Data used is month end AUM
Individual investors include Retail and HNI
Institutional investors include Corporates,
Banks/FIs and FIIs
0%
20%
40%
60%
80%
100%
Dec-17 Dec-16 Dec-15 Dec-14
Individual and Institutional Investor Composition
Individual Institutional
9.6
11.7
8.8
7.7
6.5
6.3
5.3
5.3
AUM (In Rs. Lakh Crore)
Individual investors continue to favour equity funds; institutional investors
prefer debt-oriented funds
At the end of Dec-17, equity funds formed 56% of the total asset base of individual investors,
while debt-oriented funds made up 78% of the portfolio of institutional investors of which liquidschemes constituted 26%
ICRA Online Limited 12
56%13%
0%
3%
28%
Equity Funds
Balanced Funds
Others
Liquid Funds
Debt Funds
20%
2%
0%
26%52%
Equity Funds
Balanced Funds
Others
Liquid Funds
Debt Funds
Source: AMFI, ICRA Online Research
Note: Data pertains to month end AUM of Dec-17
Equity Funds include ELSS and Other ETFs
Debt Funds include gilt funds
Others include other ETFs and Fund of funds investing overseas
Individual Institutional
INFLOW OUTFLOWANALYSIS
Section III
Investors pour over Rs. 50,000 crore in equity mutual funds in Q3FY18
Investors preferred Equities (including ELSS)and Balanced funds over Income andLiquid funds, which could be due to lowyields on money market and fixed incomesecurities
ICRA Online Limited 14
-70,000 -35,000 0 35,000 70,000
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
Q3FY17 Q2FY18 Q3FY18
Source: AMFI, ICRA Online Research
13,225
108,601
79,278
0
30,000
60,000
90,000
120,000
Q3FY18 Q2FY18 Q3FY17
In R
s. C
rore
Industry-wide Net Inflow/Outflow
Source: AMFI, ICRA Online Research
Robust retail participation leads to high infusion in Equity funds
Equity funds (including ELSS) saw net inflow of Rs. 52,397 crore in Q3FY18 vis-à-vis Rs. 52,025 crore inQ2FY18. Cumulative inflow into these funds surged 178% to Rs. 152,312 crore in CY17 from Rs. 54,875crore in CY16
As per data from AMFI, SIP contribution for Q3FY18 stood at Rs. 17,736 crore as against Rs. 11,291
crore in Q3FY17, a growth of 57% from the year-ago period
ICRA Online Limited 15
-3,000
3,000
9,000
15,000
21,000
Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 Aug-17 Dec-17
In R
s. C
rore
Equity Net Inflow/Outflow
Source: AMFI, ICRA Online Research
Note: Equity includes ELSS funds
SECTOR UPDATE Section IV
MFs continue to bet on Banks with more than 20% exposure
ICRA Online Limited 17
Top five sectors constituted close to 48% of the total equity AUM
Over the year, three out of the top five sectors witnessed more than 50% increase in exposure(Finance ~125%, Consumer Non Durables ~79% and Banks ~74%)
0
10,000
20,000
30,000
40,000
Banks Finance Consumer Non Durables Software Auto
Eq
uity
AU
M (
In R
s. C
rore
)
Equity Exposure of Top 5 AMCs in Top 5 Sectors (Dec-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
Banks and Finance sectors see highest increase in exposure*
ICRA Online Limited 18
74.1%
125.2%
79.4% 94.2%
50.0%
120.6%
66.2%79.0%
383.9%
30.6%
0.0%
100.0%
200.0%
300.0%
400.0%
0
50,000
100,000
150,000
200,000
Ba
nks
Fin
an
ce
Co
nsu
me
r
No
n
Du
rab
les
Co
nst
ruc
tio
n
Pro
jec
t
Au
to
Po
we
r
Pe
tro
leu
m
Pro
du
cts
Au
to
An
cill
arie
s
No
n -
Fe
rro
us
Me
tals
Ph
arm
ac
eu
ti
ca
ls
Yo
Y C
ha
ng
e in
%
In R
s. C
rore
Sector-wise Exposure in Dec-17 vs. Dec-16
Dec-17 Dec-16 % change
Source: AMFI, ICRA Online Research
Note: Only top-10 sectors considered
*Increase in exposure is in absolute terms
CATEGORY PERFORMANCESection V
Equity-oriented mutual funds continue to find favour
Key drivers:
Benchmark indices at lifetime high - S&P BSE Sensex and
Nifty 50 gained 28% and 29%, respectively in CY17.
Implementation of GST Act
Recapitalisation package for banks
Upgrade of India’s position in World Bank’s “Ease of doing business” list
Sovereign rating upgrade by Moody’s
ICRA Online Limited 20
37.5
14
.1
18.7
8.9
24.8
9.5
13.6
38.7
13.0
17.6
8.8
38.6
13
.9
18.7
8.3
30.4
9.3
13.2
5.5
0.00
10.00
20.00
30.00
40.00
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
Note: *Compounded annualized returns
Data as of Dec-17
Short term and long term categories post subdued returns
ICRA Online Limited 21
Key drivers:
Government’s announcement of hiking its fiscal year borrowing amount raised investors’ concern
over overshooting of the deficit target
Increase in domestic inflationary pressure restricted MPC from lowering interest rates
Increase in global crude oil prices
6.2 6.3 6.5 7
.4
5.1 6
.1 6.4
7.8
2.4
4.6 5
.6
7.7
0.00
3.00
6.00
9.00
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
Source: ICRA Online Research
Note: *Compounded annualised returns for periods ≥1 year; Simple annualised returns for <1 year
Data as of Dec-17
4.9
7.7 8.2
7.7
2.3
7.8 8
.6
8.2
0.00
3.00
6.00
9.00
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
Equity MF inflows continue to drive the domestic equity markets
ICRA Online Limited 23
140,033
79,723
110,540
-14,171
52,977
11,622
-22,678 -20,925
40,281
65,04154,912
105,927
-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
Source: ICRA Online Research
Large Caps command the largest share of assets
ICRA Online Limited 24
Note: *Classification of market cap as per MFI Explorer, only equity diversified funds were considered for analysis
0%
20%
40%
60%
80%
100%
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
In %
Investment Across Market Caps*
Large Cap Mid Cap Small Cap Debt & Other
Source: ICRA Online Research
Instrument allocation pattern in debt segment remains consistent
ICRA Online Limited 25
70.4
%
5.6
%
4.4
%
6.7
%
6.2
%
1.3
%
0.0
% 4.6
%
0.9
%
70.9
%
3.8
%
2.7
% 6.3
%
8.4
%
1.9
%
0.0
% 5.4
%
0.7
%
64.8
%
5.3
%
6.8
%
5.4
% 12.0
%
1.4
%
3.7
%
0.6
%
0%
25%
50%
75%
Bo
nd
/
De
be
ntu
re
Ca
sh &
Eq
uiv
ale
nts
CD
CP
Gilt
Oth
ers
REIT
s &
In
vIT
s
SD
L
T B
ill
In %
Dec-17 Sep-17 Dec-16
Source: ICRA Online Research
Average maturity for Income and Gilt funds remains consistent
ICRA Online Limited 26
0
4
8
12
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-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
Source: ICRA Online Research
Note: Categorisation of Income and Gilt funds as per MFI Explorer
AMFI PROPOSALSSection VII
Budget Proposals from AMFI
ICRA Online Limited 28
AMFI has shared 17 direct tax and 11 indirect tax proposals with Finance Ministry
Proposals submitted by AMFI
Direct Tax Proposals
Introduction of debt linked
savings scheme (DLSS)
Taxation on listed debt
securities and debt mutual
funds to be aligned
Alignment of tax treatment
of retirement/pension
schemes of mutual funds
and NPS
Threshold limit in equity
oriented MF schemes to be
lowered to 50% from 65%
More
Indirect Tax Proposals
Transaction between head
office and branch of AMC
should not be treated as
supply
Eligibility of credit with
respect to spill-over of
expenses from mutual fund
scheme to AMC
Availability of input tax
credit against exit load
levied by mutual fund
schemes
More
Source: AMFI
REGULATORY UPDATESection VIII
Regulator remains vigilant (1 of 2)
ICRA Online Limited 30
SEBI provides scheme
categorisations
In an effort to end duplication of schemes, SEBI categorised MF
schemes under five different heads - equity, debt, hybrid,
solution-oriented and others. It also clarified on market
capitalisation norms for equity funds, instruments allowed for
investments for corporate bond fund and credit risk funds
SEBI directs to adopt TRI to
benchmark schemes
SEBI directed mutual fund houses to adopt Total Return Index
(TRI) to benchmark schemes as it is a more appropriate way to
measure the performance of such financial products
With the objective of enabling investors to compare the
performance of a scheme vs an appropriate benchmark, SEBI
decided that the selection of a benchmark for a mutual fund
scheme shall be in alignment with the investment objective,
asset allocation pattern and investment strategy of the
scheme
SEBI lays out approach for
selection of benchmark
Source: SEBI
Regulator remains vigilant (2 of 2)
ICRA Online Limited 31
SEBI caps cross-shareholding
in mutual funds to 10%
To avoid “potential conflict of interest”, SEBI capped the cross-
shareholding in mutual funds to 10%. Hence, a sponsor of a
mutual fund, its associate and/or its group company and its
AMC through the schemes, or otherwise collectively, may not
be allowed to have 10% or more stake in AMCs / Trustee
Companies of any other mutual funds
SEBI lays out tenures of
independent trustees,
independent directors, auditors
In order to strengthen the governance structure of mutual
funds, SEBI put in place a framework for the tenure of
independent trustees, independent directors as well as
auditors
Source: SEBI
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