Mutual Fund Screener...Mutual Fund Screener –What’s Inside01 Industry Size 03 Inflow Outflow Analysis 04 Sector Update 02 Investor Trends 06 Industry Insights 05 07 Category Performance

Mutual Fund ScreenerFor the quarter ended Sep -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 4% QoQ to Rs. 24.31 lakh crore in Q2FY19

Industry Quarterly Average Assets UnderManagement (QAAUM) grew for the 20th

consecutive quarter in Q2FY19

Tailwinds for the industry include:

Strong retail participation especially fromB30 cities. Investor awareness campaignssuch as “Mutual Funds Sahi Hai”

Significant increase in SIP accounts

Growth Trend of AMCs for the Quarter ended Sep-18

AMCs Range

Top 5 0% to 9%

Next 10 0% to 11%

Rest -6% to 26%

Source: AMFI, ICRA Online Research

Note: QoQ growth of QAAUM as of Sep-18

ICRA Online Limited 4

Rs. 90,754 crore added in Q2FY19, up 16% YoY

Sep-17,

2,094,852

Jun-18,

2,340,377

Sep-18,

2,431,131

0

1,000,000

2,000,000

3,000,000

Sep-17 Jun-18 Sep-18

QA

AU

M (

In R

s. C

rore

)

Mutual Fund Industry (QAAUM)

Source: AMFI, ICRA Online Research;

Note: QAAUM – Quarterly Average Assets Under Management

QAAUM of top 10 AMCs between Rs. 0.90 lakh crore and Rs. 3.10 lakh crore



-2%

0%

2%

4%

6%

8%

10%

12%

0

70,000

140,000

210,000

280,000

350,000

ICICI

Prudential

Mutual Fund

HDFC Mutual

Fund

Aditya Birla

Sun Life

Mutual Fund

SBI Mutual

Fund

Reliance

Mutual Fund

UTI Mutual

Fund

Kotak

Mahindra

Mutual Fund

Franklin

Templeton

Mutual Fund

DSP Mutual

Fund

Axis Mutual

Fund

Q-o

-Q G

row

th (

In %

)

QA

AU

M (

In R

s. C

rore

)

Top 10 AMCs

Sep-18 Jun-18 % 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, ranging from ~35% to 100%


QAAUM of eight fastest growing AMCs below Rs. 25,000 crore

Among the larger AMCs (QAAUM > Rs. 35,000 crore), SBI Mutual Fund and L&T Mutual Fund hasshown tremendous growth in assets

0%

25%

50%

75%

100%

125%

0

70,000

140,000

210,000

280,000IIF

L M

utu

al

Fu

nd

Ma

hin

dra

Mu

tua

l

Fu

nd

Mira

e A

sse

t

Mu

tua

l

Fu

nd

Ed

elw

eis

s

Mu

tua

l

Fu

nd

PP

FA

S

Mu

tua

l

Fu

nd

Mo

tila

l

Osw

al

Mu

tua

l

Fu

nd

IL&

FS

Mu

tua

l

Fu

nd

(ID

F)

L&T

Mu

tua

l

Fu

nd

BO

I A

XA

Mu

tua

l

Fu

nd

SB

I M

utu

al

Fu

nd

Yo

Y G

row

th (

In %

)

QA

AU

M (

In R

s. C

rore

)

Top 10 Fastest Growing AMCs

Sep-18 Sep-17 % Change YoY


Private sector JVs (predominantly Indian) manage ~50% of Q2FY19 QAAUM



Note: QoQ – Q2FY19 vs Q1FY19; YoY – Q2FY19 vs Q2FY18

CategoryAs a % of Q2FY19 QAAUM

QAAUM (In Rs. Crore) Growth

Q2FY19 Q1FY19 Q2FY18 QoQ YoY

Bank Sponsored

Joint Ventures - Predominantly Indian

11.5% 278,656 256,573 208,011 8.6% 34.0%

Joint Ventures - Predominantly Foreign

0.6% 13,564 12,240 11,138 10.8% 21.8%

Others 7.2% 175,907 163,723 160,200 7.4% 9.8%

Institutions Indian 0.9% 21,064 21,057 23,504 0.0% -10.4%

Private Sector

Indian 21.8% 529,156 503,111 438,177 5.2% 20.8%

Joint Ventures - Predominantly Indian

49.5% 1,203,315 1,185,923 1,074,010 1.5% 12.0%

Foreign 6.9% 167,048 156,572 137,637 6.7% 21.4%

Joint Ventures - Predominantly Foreign

0.8% 19,721 18,040 16,004 9.3% 23.2%

Joint Ventures - Others 0.9% 22,700 23,137 25,191 -1.9% -9.9%


INVESTOR TRENDSSection II

Q2FY19 sees 32.6 lakh new folios; Equity remains the most popular category

As per SEBI data, total folio count at the end of Sep-18 was 7.8 crore, up 4.4% from the previousquarter

Out of the 32.6 lakh new folios added in Q2FY19, 29.5 lakh were in the Equity category (includingELSS)


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)

Sep-18 Jun-18 Sep-17


63

1.7

64

9.2

66

4.9

68

3.3

69

9.0

71

3.5

72

1.9

73

4.6

74

6.3

75

4.9

76

5.7

77

8.9

0

5

10

15

20

500

600

700

800

Oc

t-1

7

No

v-1

7

De

c-1

7

Ja

n-1

8

Fe

b-1

8

Ma

r-18

Ap

r-1

8

Ma

y-1

8

Ju

n-1

8

Ju

l-18

Au

g-1

8

Se

p-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

B30 locations generate ~14% of industry assets in Sep-18

The country’s smaller towns or B30 (beyondtop 30 cities) locations accounted for 14.7%of the total industry AUM at the end of

Sep-18

SEBI has expanded the scope of T15/B15locations to T30/B30 from the beginning ofFY19



AUM Garnered by Different Channels

Sep-18 Aug-18

T30 B30 T30 B30

Associate Distributor 6% 19% 6% 19%

Direct Plan 44% 17% 45% 18%

Non-Associate

Distributor50% 64% 49% 63%

Sep-18,

2,074,347

Aug-18,

2,112,410

Sep-18,

357,003

Aug-18,

357,667

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Sep-18 Aug-18

AU

M (

In R

s. C

rore

)

Growth in Assets in T30/B30 Locations

T30 B30

42%

66%

42%

65%58%

34%

58%

35%

0%

25%

50%

75%

100%

T30 B30 T30 B30

Sep-18 Aug-18

Equity/Non-equity Asset Mix in T30/B30 Locations

Equity Non-equity

INFLOW OUTFLOWANALYSIS

Section III

Investors pour about Rs. 29,000 crore in Equity mutual funds in Q2FY19

In Q2FY19, net inflows in the Equitycategory (including ELSS) was Rs.28,999 crore compared with Rs. 32,181crore in Q4FY18

Cumulative SIP contribution has beenRs. 22,939 crore for Q2FY19 vis-à-vis Rs.21,548 crore in Q1FY19


-75,000 -40,000 -5,000 30,000 65,000 100,000 135,000

Income

Infrastructure Debt Fund

Equity

Arbitrage Funds

Balanced

Liquid/Money Market

Gilt

Elss - Equity

Gold Etf

Other Etfs

FoFs Investing Overseas

In Rs. Crore

Category-wise Net Inflow/Outflow

Q2FY19 Q1FY19 Q2FY18


-88,138

133,903

108,601

-100,000

-50,000

0

50,000

100,000

150,000

Q2FY19 Q1FY19 Q2FY18

In R

s. C

rore

Industry-wide Net Inflow/Outflow


Robust SIP inflows seen from retail investors

Equity funds (including ELSS) witnessed lower net inflows in Q2FY19 vis-a-vis Q1FY19, as equitymarkets remained volatile


-5,000

1,000

7,000

13,000

19,000

25,000

Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-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 five sectors constitute about 52% of the total equity AUM


AMCs continue to bet on Banks and Finance sectors with ~ 12% of the total equity AUM

Riding on a weak rupee, Pharmaceuticals and Software sectors remained in the top five

0

8,000

16,000

24,000

32,000

Banks Software Finance Consumer Non Durables Pharmaceuticals

Eq

uity

AU

M (

In R

s. C

rore

)

Equity Exposure of Top Five AMCs in Top 5 Sectors (Sep-18)

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


Software sector sees highest growth in inflow in percentage terms


-15%

20%

55%

90%

0

37,000

74,000

111,000

148,000

185,000B

an

ks

So

ftw

are

Fin

an

ce

Co

nsu

me

r

No

n

Du

rab

les

Ph

arm

ac

eu

ti

ca

ls

Pe

tro

leu

m

Pro

du

cts

Au

to

Co

nst

ruc

tio

n

Pro

jec

t

Po

we

r

Au

to

An

cill

arie

s

% C

ha

ng

e Y

oY

In R

s. C

rore

Sector-wise Inflow in Sep-18 Vis-a-vis Jun-18 and Sep-17Sep-18 Jun-18 Sep-17 % change - QoQ % change - YoY


Note: Only top-10 sectors considered

CATEGORY PERFORMANCESection V

Performance of Equity mutual funds stays subdued over the year

Performance of equity-oriented mutual funds remained under pressure as Indian equity markets slumped

to more than two-month low in Sep-18

Slide in rupee, banks’ management issues, liquidity concerns, surge in crude oil prices and global trade

war concerns pressured markets


4.7

9.4

15

.5

12.4

-3.4

8.9

23.4

17.0

0.9

10.7

19.2

13.8

-6.6

10.8

25.8

15.7

2.6

10.1

18.4

14.6

2.7

11.0

18.3

-0.7

11.2

20.6

15.8

2.4

10.3

18.3

13.6

-10

-5

0

5

10

15

20

25

30

1 Year 3 Year 5 Year 10 Year

Re

turn

s (I

n %

)

Performance* of Equity-Oriented Mutual Fund Categories

Large Cap Fund Mid Cap Fund Large & Mid Cap Fund Small cap Fund Multi Cap Fund Focused Fund Value Fund ELSS

Source: ICRA Online Research;

Note: *Compound Annualized returns; Data as of Sep-18

Hybrid categories post muted performance in shorter tenures


2.5

8.9

15

.4

12

.3

1.7

6.4

9.4

8.8

4.7

8.4

14.2

12.3

3.3

6.9

8.1

7.7

5.6 6

.1 7.0

4.2

7.5

10.0 1

1.1

0

4

8

12

16

1 Year 3 Year 5 Year 10 Year

Re

turn

s (I

n %

)

Performance* of Hybrid Mutual Fund Categories

Aggressive Hybrid Fund Conservative Hybrid Fund

Dynamic Asset Allocation or Balanced Advantage Equity Savings

Arbitrage Fund Multi Asset Allocation

Source: ICRA Online Research;

Note: *Compound Annualized returns; Data as of Sep-18

Short-term funds perform better than their long-term peers


Key drivers:

Gilt funds underperformed over the year as rising global crude oil prices, a plunging rupee and increase in

domestic inflationary pressures pushed up bond yields

5.1

6.1

4.9

3.7 4

.3 4.9 5

.7

4.1

1.0

5.8

3.7

3.0

2.7

1.9

6.4

5.1

-0.4

6.1

4.3 4.4

3.4

1.4

6.6

5.85.9

7.3

6.8 7

.5

6.5

6.2 7

.0 7.0

-2

0

2

4

6

8

Gilt Fund Low Duration

Fund

Short Duration

Fund

Credit Risk Fund Corporate

Bond Fund

Dynamic Bond Liquid Fund Ultra Short

Duration Fund

Re

turn

s (I

n %

)

Performance* of Debt Funds

3 Months 6 Months 1 Year 3 YearsSource: ICRA Online Research

Note: *Compound annualised returns for periods ≥1 year; Simple annualised returns for <1 year; Data as of Sep-18

Long Term Medium Term Short Term

INDUSTRY INSIGHTSSection VI

Outflows in Sep-2018 surpass inflows seen in the first two months of Q2FY19


79,723

110,540

-14,171

52,977

26,021

-26,148-20,925

40,281

65,04154,912

140,042

50,085

-50,000

0

50,000

100,000

150,000

FY14 FY15 FY16 FY17 FY18 FY19 TD

In R

s. C

rore

FPI/FII & Mutual Fund Investment Trends in Equity Markets

FPI/FII MF

Source: ICRA Online Research

Instrument allocation pattern in debt segment


0%

25%

50%

Bond/

Debenture

CP CD Gilt SDL T Bill Others REITs & InvITs Cash &

Equivalents

In %

Sep-18 Jun-18 Mar-18


Average maturity trend in last one year


0

5

10

15

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

Ave

rag

e M

atu

rity

(In

Ye

ars

)

Average Maturity Trends in Corporate Bond Fund, Dynamic Bond, Gilt Fund, Gilt Fund with

10-Year Constant Duration

Corporate Bond Fund Dynamic Bond Gilt Fund Gilt Fund with 10 Year Constant Duration


REGULATORY UPDATESection VII

Regulator remains vigilant (1 of 2)


SEBI lowers the fees that mutual

funds charge SEBI cut expense ratio for open-ended equity schemes based

on AUM size. Total expense ratio for schemes AUM of up to Rs.

500 crore will be 2.25% every year. In addition, SEBI has barred

upfront commissions to distributors

All scheme-related expenses

shall be paid from the scheme

only SEBI mandated that all scheme-related expenses, including

commissions, shall be paid only from the scheme and not from

the books of the AMCs. The regulator has done away with

upfront commission of 1% that was allowed earlier. Going

forward, fund houses will have to pay commission through a full

trail fee model in all schemes

Source: Media Reports

Regulator remains vigilant (2 of 2)


Fund houses can charge

additional 30 bps on expense for

B30 cities only on retail AUM Additional expense allowed for penetration in B-30 cities shall

be based only on inflows from retail investors. Industry can

continue to charge additional TER on retail and HNI assets until

SEBI releases a definition on retail investors. Fund houses can

incentivize their distributors with additional B30 commission only

through trail model as against upfront mode

AMFI discontinues online

registration and renewal of

ARN AMFI discontinued mutual fund distributors’ online registration

and renewal of AMFI Registration Number (ARN) with Aadhaar

number following the Supreme Court’s verdict on Aadhaar.

The Unique Identification Authority of India had asked AMFI,

R&T agents and KYC registration agencies to give it in writing

that they have stopped using Aadhaar-based authentication

Source: Media Reports

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Documents

Mutual Fund Screener...Mutual Fund Screener –What’s Inside01 Industry Size 03 Inflow Outflow Analysis 04 Sector Update 02 Investor Trends 06 Industry Insights 05 07 Category Performance