Mutual Fund Screener...Mutual Fund Screener –What’s Inside01 Industry QAAUM 02 Inflow Outflow Analysis 03 Sector Update 05 Industry Insights 06 Regulatory Update 04 Category Performance

Mutual Fund ScreenerFor the quarter ended September 2016

ICRA Online LtdA Group ICRA company

Mutual Fund Screener – What’s Inside

01

Industry

QAAUM

02

Inflow Outflow

Analysis

03

Sector

Update

05

Industry

Insights

06

Regulatory

Update

04

Category

Performance

INDUSTRY QAAUM

Section I

Industry QAAUM hits another high, crosses Rs. 16 lakh cr

Industry QAAUM grew for the 12th consecutive period in Q2FY17

The 11.8% QoQ growth in QAAUM was driven by strong participation from retail investors and robust inflow in

equity schemes

Low AUM to GDP ratio of 7% (as of

2015) compared with 11.4% in

Australia, 91% in US, and 51% in UK

suggests huge potential for growth in

the coming quarters1

Growth in QAAUM for the quarter ended Sep 2016

AMCs Range

Top 5 10% to 13%

Next 10 5% to 20%

Rest -21% to 32%

Source: AMFI; ICRA Online Research. AMC list based on Sep 2016 QAAUM

ICRA Online Limited 4

Sep-16,

1,610,729Jun-16,

1,441,02 Sep-15,

1,290,431

0

500,000

1,000,000

1,500,000

2,000,000

Sep-16 Jun-16 Sep-15

In R

s. C

rore

Mutual Fund Industry (QAAUM)

Source: AMFI, ICRA Online Research; QAAUM –Quarterly Average Assets Under Management

QoQ

11.8%

YoY

24.8%

1EY Report (2016) – Mutual Funds: Ready for the next leap

ICICI and HDFC surpass Rs. 2 lakh cr mark in assets

for the first time in history

The share of top-10 AMCs (in terms of QAAUM) fell slightly to 80.1% compared with 80.5% in the last quarter

ICICI Prudential MF retained pole position with QoQ growth of 11.7%


-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

0

40,000

80,000

120,000

160,000

200,000

240,000

ICICI

Prudential

Mutual Fund

HDFC

Mutual Fund

Reliance

Mutual Fund

Birla Sun

Life Mutual

Fund

SBI Mutual

Fund

UTI Mutual

Fund

Franklin

Templeton

Mutual Fund

Kotak

Mahindra

Mutual Fund

IDFC Mutual

Fund

DSP

BlackRock

Mutual Fund

Qo

QG

row

th (

In %

)

AU

M (

In R

s. C

rore

)

Top Ten AMCs

Sep-16 Jun-16 QoQ

Source: AMFI, ICRA Online Research

QAAUM of four fastest growing AMCs

below Rs. 10,000 cr

DHFL Pramerica AMC was not included in the list of top 10 fastest growing AMCs as its YoY growth

of 935% was fuelled by the acquisition of Deutsche MF

Mirae Asset doubled its corpus in the last

one year and registered highest % change

in QAAUM (YoY) of 115.7%

Among the larger AMCs (QAAUM > Rs.

35,000 crore), Tata, Axis, DSP Blackrock

and SBI Mutual Fund have shown

exceptional growth in corpus in the last

one year


0.00%

30.00%

60.00%

90.00%

120.00%

0

30,000

60,000

90,000

120,000

150,000

SB

I M

utu

al F

un

d

DS

P B

lack

Rock

Mu

tual

Fu

nd

Ax

is M

utu

al F

un

d

Tat

a M

utu

al F

und

L&

T M

utu

al F

un

d

LIC

Mu

tual

Fu

nd

Mo

tila

l O

swal

Mu

tual

Fu

nd

Mir

ae A

sset

Mu

tual

Fun

d

Ed

elw

eiss

Mu

tual

Fun

d

Qu

antu

m M

utu

al F

und

Yo

Y G

row

th (

In %

)

AU

M (

In R

s. C

rore

)

Top ten fastest growing AMCs

Sep-16 Sep-15 YoY


Private sector joint ventures (predominantly Indian)

manage 58% of QAAUM


Bank

Sponsored_JV_Predomi

nantly Foreign

1%

Bank

Sponsored_JV_Predomi

nantly Indian

9%

Bank Sponsored_Others

8%

Institutions_Indian

1%

Private Sector_Foreign

7%

Private Sector_Indian

13%

Private

Sector_JV_Others

2%

Private

Sector_JV_Predominantl

y Foreign

Private

Sector_JV_Predominant

ly Indian

58%

Source: AMFI, ICRA Online Research, data pertains to Sep-16

INFLOW OUTFLOW ANALYSIS

Section II

Net inflow/outflow during Q2FY17

Equity funds scaled new highs aided by both

strong inflows and mark-to-market gains

Short-term debt funds continued to gain

investors’ confidence amid uncertain interest

rate scenario


-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 Overseas

Category wise net inflow

Q2FY16 Q1FY17 Q2FY17


Q2FY17,

144,123

Q1FY17,

90,441

Q2FY1

-30,000

0

30,000

60,000

90,000

120,000

150,000

180,000

Q2FY17 Q1FY17 Q2FY16

Net inflow/outflow


Equity MFs see net infusion of

Rs. 12,754 cr in Q2FY17

Mutual funds have been net buyers of equities for all the six months of FY17 due to higher retail participation

Net inflows were Rs. 22,233 crore in H1FY17 compared with Rs. 53,666 crore in the same period last year. Lower net

inflows could be attributed to higher redemptions due to a volatile equity environment


-5,000

0

5,000

10,000

15,000

Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16

In R

s. C

rore

Equity Netflow

Source: AMFI, ICRA Online Research; Equity includes ELSS funds as well

SECTOR UPDATE

Section III

Sectoral update

Top five sectors constituted almost 64% of the total

equity AUM

Highest inflow was seen in Paper (25%) and Healthcare

services (21%) sectors


Financial Services continued to be the most preferred

sector with more than 28% of the equity AUM invested

During the quarter, the sector witnessed more than 12%

increase in inflow


0.00

30,000.00

60,000.00

90,000.00

120,000.00

150,000.00


Eq

uit

y A

UM

(In

Rs.

Cro

re)

Top 5 Sectors - Equity Exposure

Financial Services Automobile Energy Consumer Goods IT

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

ICICI

Prudential

Mutual Fund

HDFC

Mutual Fund

Reliance

Mutual Fund

Birla Sun

Life Mutual

Fund

SBI Mutual

FundEq

uit

y A

UM

(In

Rs.

Cro

re)

Equity Exposure of Top 5 AMC's in Top 5

Sectors (as on Sep'16)

Financial Services Automobile IT Energy Consumer Goods

CATEGORY PERFORMANCE

Section IV

Equity funds continued to deliver positive returns

Average returns across the categories outperformed average benchmark return across various time horizons.


13

.19

25

.87

16

.89

12

.37

12

.05

11

.33 13

.88

10

.20

25

.49

14

.60

12

.44

12

.65

25

.01

16

.90

11

.40

9.5

5

15

.65

12

.45

8.5

6

0.00

5.00

10.00

15.00

20.00

25.00

30.00

1 Year 3 Year 5 Year 10 Year

Ret

urn

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 30th September 2016

Greater than or Equal to 1 year Compound Annualized returns

Debt funds performed well due to comfortable liquidity situation

Fall in yields along with ease in liquidity and expectations of a rate-cut by RBI played supportive role for long-term

tenure papers

Fall in small savings rate can boost debt mutual funds, specially, fixed maturity plans (FMPs)


6.7

6

7.3

2

7.4

7

8.2

3

9.0

2

8.9

4

8.3

9

8.6

7

11

.34

9.4

7

9.6

2

0.00

3.00

6.00

9.00

12.00

3 Months 6 Months 1 Year 3 Year

Ret

urn

s (i

n %

)

Performance of Short Term Debt oriented

Mutual Fund categories

Liquid Funds Ultra Short Term Funds Short Term Funds


Less than 1 year Simple Annualized returns, Greater than or Equal to 1 year

Compound Annualized returns

9.6

9

10

.42

9.5

5

7.9

9

10

.96

11

.64

9.9

8

8.2

0

0.00

3.00

6.00

9.00

12.00

1 Year 3 Year 5 Year 10 Year

Ret

urn

s (i

n %

)

Performance of Long Term Debt oriented

Mutual Fund categories

Income Funds Gilt Funds


Greater than or Equal to 1 year Compound Annualized returns

INDUSTRY INSIGHTS

Section V

B15 locations generate 17% of industry AUM in Sep 2016

Activity beyond the top 15 cities (referred to as B-15)

has increased in recent years, which indicates

expansion of the investor base. Improved distribution

and regulatory changes to the fee structure have helped

in increasing participation in smaller places


28%

50%

72%

50%

0%

20%

40%

60%

80%

100%

T15 B15

In %

Higher equity participation in B-15 cities (As on Sep-16)

Equity Oriented Scheme Debt Oriented Scheme

90%

76%

10%

24%

0%

50%

100%

T15 B15

In %

24% of the B15 assets are from individual category

Institutions Individuals

1,377,840

1,087,770

273,612 205,862

0

400,000

800,000

1,200,000

1,600,000

Sep-16 Sep-15

In R

s. C

r

The rate of growth in assets for B15 locations is 33% Y-o-Y

T15 B15

Source: AMFI

Instrument allocation pattern in debt segment

Source: ICRA Online Research


43

.49

21

.15

18

.60

13

.14

5.8

1

-2.1

9

39

.28

24

.09

17

.65

13

.64

6.1

9

-0.8

6

39

.26

21

.73

21

.12

14

.59

5.4

7

-2.1

7

-10.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

Bond/Debentures CP Gilt CD Others Cash & Equivalents

In %


Average maturity goes below FY16 levels


0.00

5.00

10.00

15.00

20.00

Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16

In Y

ears

Average Maturity trends in Income, GILT-long term & GILT-short term funds

Average Maturity_Income Funds Average Maturity_GILT LT Average Maturity_GILT ST

Liquidity analysis of last 12 months


Sep-16 Aug-16 Jul-16 Jun-16 May-16 Apr-16 Mar-16 Feb-16 Jan-16 Dec-15 Nov-15 Oct-15

Equity 1.82 1.91 1.73 1.74 1.84 1.99 1.85 1.85 1.84 2.07 2.08 2.00

Speciality 0.05 0.04 0.05 0.04 0.06 0.06 0.04 0.04 0.04 0.04 0.04 0.04

Gilt 0.04 0.06 0.06 0.05 0.07 0.07 0.06 0.05 0.04 0.11 0.06 0.06

Liquid 16.98 18.85 20.07 19.02 20.31 20.96 13.61 21.66 19.38 18.84 19.17 18.64

Balanced 0.15 0.21 0.19 0.19 0.17 0.17 0.09 0.20 0.21 0.24 0.18 0.17

ETF 0.48 0.46 0.48 0.53 0.49 0.52 0.58 0.57 0.53 0.50 0.48 0.54

Fund of Funds 0.15 0.15 0.16 0.17 0.17 0.18 0.21 0.21 0.18 0.17 0.17 0.19

Dynamic/Asset

Allocation0.30 0.34 0.32 0.25 0.26 0.25 0.19 0.11 0.11 0.13 0.11 0.13

Debt 8.28 9.52 9.48 9.32 9.49 10.04 9.60 10.21 9.97 9.35 10.03 9.92

REGULATORY UPDATE

Section VII

Regulator remains pro-active during the quarter

SEBI sets new rules for

operation of Central KYC

records registry

SEBI directs AMCs to

appoint scrutinisers to review

rationale of voting rights

SEBI raises additional

exposure limits of MFs in

HFCs to 10%

SEBI to amend investment

adviser regulations

All mutual fund investors will now have to provide their mother's name and

proof of permanent address

The requirement became mandatory for new investors from Aug 1

SEBI said mutual funds should ensure that additional exposure to securities

issued by HFCs are rated AA and above, and these HFCs are registered with

the National Housing Bank

This move will provide active voice to retail investors on important

decisions of the AMCs

AMCs would be required to obtain certification from the scrutiniser on

voting reports being disclosed by them

In an attempt to restrict unregistered entities from offering investment

advisory services, SEBI will amend the SEBI Investment Adviser

Regulations, 2013

Post amendment, any entity providing investment advice would be brought

under the ambit of investment adviser regulations


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Contact Information

Saugat Acharya

+91 98209 74940

[email protected]

Atul Sharma

+91 96191 12544

[email protected]

Eshna Basu

+91 98318 27490

[email protected]

Documents

Mutual Fund Screener...Mutual Fund Screener –What’s Inside01 Industry QAAUM 02 Inflow Outflow Analysis 03 Sector Update 05 Industry Insights 06 Regulatory Update 04 Category Performance