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Mutual Fund ScreenerFor the quarter ended Mar-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 3% - crosses Rs. 23 lakh crore

✓ Industry Quarterly Average Assets Under

Management (QAAUM) grew for the 18th

consecutive quarter in Q4FY18

- The 3.1% quarterly growth in industry

assets was driven by benign capital

markets for most part of the fiscal; investor

awareness campaigns like “Mutual fund

sahi hai”; and strong retail participation,

especially from B-15 investors

Growth trend of AMCs for the quarter ended Mar-18

AMCs Range

Top 5 0.5% to 6%

Next 10 -5% to 10%

Rest -15% to 35%

Source: AMFI, ICRA Online Research

Note: QoQ growth of QAAUM as of Mar-18

ICRA Online Limited 4

Mar-17,

18,29,583

Dec-17,

22,36,717

Mar-18,

23,05,212

0

6,00,000

12,00,000

18,00,000

24,00,000

Mar-17 Dec-17 Mar-18

QA

AU

M (

In R

s. C

rore

)

Mutual Fund Industry (QAAUM)


Note: QAAUM – Quarterly Average Assets Under Management

Rs. 68,495 crore added in Q4FY18

Top 10 AMCs account for ~81% of QAAUM



0%

2%

4%

6%

8%

10%

0

70,000

1,40,000

2,10,000

2,80,000

3,50,000

ICICI

Prudential

Mutual Fund

HDFC Mutual

Fund

Aditya Birla

Sun Life

Mutual Fund

Reliance

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 10 AMCs

Mar-18 Dec-17 % 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

Among the larger AMCs (QAAUM >

Rs. 35,000 crore), SBI and L&T Mutual

Fund have shown tremendous

growth in assets


QAAUM of eight fastest growing

AMCs below Rs. 20,000 crore

0%

25%

50%

75%

100%

125%

0

50,000

1,00,000

1,50,000

2,00,000

2,50,000

SB

I M

utu

al F

un

d

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 F

un

d

IDB

I M

utu

al F

un

d

BO

I A

XA

Mu

tua

l Fu

nd

Ma

hin

dra

Mu

tua

l Fu

nd

PP

FA

S M

utu

al F

un

d

IIFL

Mu

tua

l Fu

nd

Yo

Y G

row

th (

In %

)

AU

M (

In R

s. C

rore

)

Top 10 Fastest Growing AMCsMar-18 Mar-17 % Change YoY


Private sector JVs (predominantly Indian) manage ~55% of Q4FY18 QAAUM



Note: Year 1 – Q4FY18 vs Q4FY17, Year 2 – Q4FY17 vs Q4FY16

Category

As a % of

Q4FY18

QAAUM

QAAUM (In Rs. Crore) Growth

Q4FY18 Q4FY17 Q4FY16 Year 1 Year 2

Bank Sponsored

Joint Ventures - Predominantly Indian 10.3% 236,474 170,901 118,822 38.4% 43.8%

Joint Ventures - Predominantly Foreign 0.5% 10,760 7,719 6,835 39.4% 12.9%

Others 7.4% 169,958 151,046 114,501 12.5% 31.9%

Institutions Indian 0.9% 20,768 21,888 13,514 -5.1% 62.0%

Private Sector

Indian 17.7% 408,322 309,118 228,925 32.1% 35.0%

Joint Ventures - Predominantly Indian 54.8% 1,262,372 1,007,955 723,393 25.2% 39.3%

Foreign 6.6% 153,271 118,491 94,756 29.4% 25.0%

Joint Ventures - Predominantly Foreign 0.9% 19,692 15,287 13,210 28.8% 15.7%

Joint Ventures - Others 1.0% 23,595 26,117 25,987 -9.7% 0.5%


INVESTOR TRENDSSection II

MF industry adds 48.6 lakh folios in Q4FY18

✓ As per data from SEBI, total folio count at the end of Mar-18 stood at 7.1 crore, 7.3% higher than the

previous quarter

✓ The mutual fund industry added close to 48.6 lakh new folios in Q4FY18 out of which 42.4 lakh were

in the Equity category (including ELSS)


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)

Mar-18 Feb-18 Mar-17


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

68

3.3

69

9.0

71

3.5

0

5

10

15

20

500

550

600

650

700

750

Ap

r-1

7

Ma

y-1

7

Ju

n-1

7

Ju

l-1

7

Au

g-1

7

Se

p-1

7

Oc

t-17

No

v-1

7

De

c-1

7

Ja

n-1

8

Fe

b-1

8

Ma

r-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

B-15 locations generate ~19% of industry assets in Mar-18

✓ The country’s smaller towns or B-15 (beyond

top 15 cities) locations accounted for 18.8%

of the total industry AUM at the end of

Mar-18

✓ In the last 12 months, B-15 towns have

witnessed AUM growth of 38% or Rs. 1.17 lakh

crore to reach Rs. 4.26 lakh crore



AUM Garnered by Different Channels

Mar-18 Mar-17

T-15 B-15 T-15 B-15

Direct Plan 46% 20% 46% 22%

Associate Distributor 6% 17% 6% 13%

Non-Associate

Distributor48% 64% 48% 64%

Mar-18,

18,44,190 Mar-17,

15,48,708

Mar-18,

4,26,436

Mar-17,

3,09,098

0

5,00,000

10,00,000

15,00,000

20,00,000

Mar-18 Mar-17

AU

M (

In R

s. C

rore

)

Growth in Assets in T-15/B-15 Locations

T15 B15

40%62%

31%54%60%

38%

69%46%

0%25%

50%

75%

100%

T15 B15 T15 B15

Mar-18 Mar-17

Equity/Non-equity Asset Mix in T-15/B-15

Locations

Equity Non-equity

INFLOW OUTFLOWANALYSIS

Section III

Investors pour in close to Rs. 38,000 crore in Equity MFs in Q4FY18

In Q4FY18, net inflow in the Equity

category (including ELSS) was Rs. 38,315

crore compared with Rs. 19,558 crore in

Q4FY17, mainly driven by Systematic

Investment Plans (SIPs). In FY18,

cumulative SIP contribution was Rs. 67,190

crore, up from Rs. 43,921 crore in FY17


-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

Q4FY18 Q3FY18 Q4FY17


67,499

13,225

29,207

0

25,000

50,000

75,000

Q4FY18 Q3FY18 Q4FY17

In R

s. C

rore

Industry-wide Net Inflow/Outflow


Robust retail participation leads to high infusion in Equity funds

✓ Equity funds (including ELSS) saw net inflow of Rs. 38,315 crore in Q4FY18 vis-à-vis Rs. 52,397 crore in

Q3FY18. Cumulative inflow into these funds surged 143% to Rs. 171,069 crore in FY18 from Rs. 70,367

crore in FY17

✓ As per AMFI data, SIP contribution grew 62% in Q4FY18 to Rs. 20,188 crore from Rs. 12,480 crore in

Q4FY17


-3,000

3,000

9,000

15,000

21,000

Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-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 5 sectors constitute about 50% of the total Equity AUM


✓ AMCs continue to bet on Banks and Finance sectors with ~ 30% of the total Equity AUM exposure

✓ Over the year, holdings in Power sector increased ~98%, Finance sector ~78% and Construction

Projects sector ~59%

0

8,000

16,000

24,000

32,000

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 (Mar-18)

HDFC Mutual Fund SBI Mutual Fund ICICI Prudential Mutual Fund Reliance Mutual Fund Aditya Birla Sun Life Mutual Fund


Banks and Finance sectors remain fund managers’ favourites*


31%

77%

44%

36%

59%

98%

26%41%

125%

24%

0%

26%

52%

78%

104%

130%

0

45,000

90,000

1,35,000

1,80,000

Ba

nks

Fin

an

ce

Co

nsu

me

r

No

n

Du

rab

les

So

ftw

are

Co

nst

ruc

tio

n

Pro

jec

t

Po

we

r

Au

to

Au

to

An

cill

arie

s

No

n -

Fe

rro

us

Me

tals

Pe

tro

leu

m

Pro

du

cts

% C

ha

ng

e Y

oY

In R

s. C

rore

Sector-wise Inflow

Mar-18 Mar-17 % change


Note: Only top-10 sectors considered, *Increase in exposure is in absolute terms

CATEGORY PERFORMANCESection V

Equity-oriented MF performance dwindles as markets take a hit

Key drivers:

✓ Market corrections led to 3.2% and 4% QoQ decline in S&P BSE Sensex and Nifty 50 benchmark

indices, respectively

✓ Factors like loan frauds in the domestic banking sector, fear of a global trade war, geopolitical

tensions worried investors


11

.7

10

.1

19

.0

12

.014

.8

7.8

13

.2

12

.1

9.0

18

.1

10

.512

.4

9.8

18

.6

11

.4

11

.0

7.0

13

.2

7.9

0

5

10

15

20

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: *Compound Annualized returns

Data as of Mar-18

Debt-oriented categories post muted returns


Key drivers:

✓ Bond yields surged in Q4FY18 over concerns of fiscal deficit. They moderated towards the end of

the quarter after reports revealed government will lower borrowings in H1FY19

✓ Income category witnessed net outflow of Rs. 33,389 crore in Q4FY18 on the back of higher yields

6.9

6.6

6.6 7

.3

7.1

6.1 6

.7

7.6

6.5

4.4

6.1

7.5

0

2

4

6

8

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: *Compound annualised returns for periods ≥1 year; Simple annualised returns for <1 year

Data as of Mar-18

5.4

7.4 8

.0

7.8

2.9

7.0

8.2

8.1

0

3

6

9

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

MF inflows continue to drive the equity markets; FPI/FII dip 51% (YoY)


1,40,033

79,723

1,10,540

-14,171

52,977

26,021

-22,678 -20,925

40,281

65,04154,912

1,36,089

-50,000

0

50,000

1,00,000

1,50,000

FY13 FY14 FY15 FY16 FY17 FY18

In R

s. C

rore

FPI/FII & Mutual Fund Investment Trends in Equity Markets

FPI/FII MF


Large-Caps continue to command the largest share of assets


0%

20%

40%

60%

80%

100%

Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

In %

Investment Across Market Caps*

Large-Cap Mid-Cap Small-Cap Debt & Other


Note: *On the basis of ICRA Online classification, only Equity Diversified funds were considered for analysis

Instrument allocation pattern in Debt segment


72

.05

%

3.1

2%

7.4

7%

7.6

9%

4.0

3%

1.3

7%

0.0

1%

4.2

2%

0.0

3%

70

.38

%

5.6

2%

4.3

8% 6

.65

%

6.2

3%

1.2

8%

0.0

2%

4.5

8% 0.8

6%

71

.58

%

3.1

5%

3.1

2%

5.4

1%

6.6

9%

2.2

4%

0.0

0%

7.6

3%

0.1

8%

0%

25%

50%

75%B

on

d/

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 %

Mar-18 Dec-17 Mar-17


Average maturity remains steady in Q4FY18


0

4

8

12

Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

Av

era

ge

Ma

turity

(In

Ye

ars

)

Average Maturity Trends in Income, Gilt Long-Term & Gilt Short-Term Funds

Income Fund Gilt Long-Term Gilt Short-Term


Note: Categorisation of Income and Gilt funds as per ICRA Online classification

REGULATORY UPDATESection VII

Regulator remains vigilant (1 of 2)


DateSEBI

mandate

Effective

fromBrief Earlier practice

Impact on retail

investors

02-Feb-18 Disallows

charging of

additional

expenses

Immediate

effect

(02-Feb-18)

AMCs cannot charge additional

expenses of up to 0.2% of daily net assets

for schemes where exit load is not

levied/not applicable (includes close-

ended schemes)

AMCs charge up to 0.2%

of daily net assets for

additional expenses,

incurred towards different

heads

Has lowered the

cost of investments

02-Feb-18 Allows

additional

Total Expense

Ratio (TER) to

be charged

only for B-30

locations

01-Apr-18 1. Definition of top cities and beyond top

cities has been revised. The T-15 and B-15

would be replaced by T-30 and B-30

2. Additional TER of up to 30 basis points

would be allowed for inflow from beyond

top 30 cities (B-30) instead of beyond top

15 cities (B-15)

AMCs charge additional

TER up to 30 basis points

on daily net assets of the

scheme if the new inflow

from B-15 cities are at

least (a) 30% of gross new

inflows in the scheme or

(b) 15% of the average

AUM (year to date) of the

scheme, whichever is

higher

1. Has lowered the

cost of investments

2. Penetration of

mutual fund

beyond top 30 cities

Source: SEBI

Regulator remains vigilant (2 of 2)


DateSEBI

mandate

Effective

fromBrief Earlier practice

Impact on retail

investors

05-Feb-18 Changes

AMCs’

disclosure

norms for TER

01-Mar-18 1. AMCs need to disclose Total Expense

Ratio (TER) of all schemes under a

separate head on their website on daily

basis; downloadable in spreadsheet

2. Any change in the base TER of a

scheme will be communicated to

investors through email or SMS at least

three working days prior to effecting such

change

AMCs disclosed monthly

TER in factsheets

Has provided

greater

transparency and

uniformity

12-Apr-18 Frames

disclosure

norms for

consolidated

/ merged

schemes

01-May-18 SEBI provided a framework for

performance disclosure of schemes post

consolidation/merger. While different

formats for different scenarios are

prescribed, the common theme is AMCs

will have to disclose the weighted

average performance of both the new

and old schemes

No specific norms for

disclosing the

performance of a

surviving scheme post

merger

Has provided

greater

transparency and

uniformity

Source: SEBI

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