Mutual Fund Screener

For the quarter ended Dec-16

ICRA Online Ltd

A Group ICRA company
 Mutual Fund Screener – What’s Inside

01 02 03

Industry Inflow Outflow Sector

QAAUM Analysis Update

04 05 06
Category Industry Regulatory
Performance Insights Update
Section I

INDUSTRY QAAUM
 Industry QAAUM hits another high, Rs. 82,610 cr
added in Q3FY17
Mutual Fund Industry (QAAUM) Growth in QAAUM for the quarter ended Dec 2016
2,000,000
Dec-16,
Sep-16,
Count of AMCs
1,693,339 AMCs Range
1,610,729 Growth De-growth
Dec-15, Top 5 4% to 7% 5 0
1,500,000
1,316,012
Next 10 -4% to 17% 9 1
In Rs. Crore

QoQ
5.1% Rest -20% to 53% 13 12
1,000,000
Source: AMFI; ICRA Online Research. AMC list based on Dec-16 QAAUM;
Edelweiss AMC was not included in the list as the QoQ growth of 203% was fuelled by the
acquisition of JP Morgan AMC
YoY
500,000
28.7%

Assets under management of the mutual fund industry

0 likely to grow at a CAGR of 19% between FY15-FY20
Dec-16 Sep-16 Dec-15 and cross Rs. 30 lakh crore in 20201
Source: AMFI, ICRA Online Research; QAAUM – Quarterly Average Assets
Under Management

 Industry QAAUM grew for the 13th consecutive period in Q3FY17

 The 5.1% QoQ growth in QAAUM was driven by strong participation from retail investors and robust inflow in
equity schemes
1KPMG Report (Nov-16) – Distribution disrupted: Building a zillion distributors ICRA Online Limited 4
 Top 10 AMCs account for 97.6% of incremental
QAAUM in Q3FY17
Top Ten AMCs
Dec-16 Sep-16 QoQ
240,000 20.00%

200,000 15.00%
QAAUM (In Rs. Crore)

QoQ Growth (In %)

160,000 10.00%

120,000 5.00%

80,000 0.00%

40,000 -5.00%

0 -10.00%
ICICI HDFC Reliance Birla Sun SBI Mutual UTI Mutual Kotak Franklin DSP IDFC Mutual
Prudential Mutual Fund Mutual Fund Life Mutual Fund Fund Mahindra Templeton BlackRock Fund
Mutual Fund Fund Mutual Fund Mutual Fund Mutual Fund

Source: AMFI, ICRA Online Research

 The share of top-10 AMCs (in terms of QAAUM) increased to 81.0% compared with 80.1% in the last quarter
 ICICI Prudential MF retained pole position with QoQ growth of 5.6%
ICRA Online Limited 5
 QAAUM of three fastest growing AMCs
below Rs. 10,000 cr
Top ten fastest growing AMCs
Dec-16 Dec-15 YoY
150,000 140.00% Among the larger AMCs (QAAUM > Rs.
QAAUM (In Rs. Crore)

120,000
35,000 crore), SBI, Kotak Mahindra, DSP

YoY Growth (In %)

105.00% BlackRock, Axis, and L&T Mutual Fund
90,000 have shown exceptional growth in corpus
70.00% in the last one year
60,000

35.00%
30,000

0 0.00%  Mirae Asset and Indiabulls doubled their

DSP BlackRock MF

Kotak Mahindra MF

Axis MF
Mirae Asset MF

LIC MF
Indiabulls MF

Motilal Oswal MF

SBI MF

L&T MF

Quantum MF
corpus in the last one year and registered
highest % change in QAAUM (YoY) of
126.4% and 108.0%, respectively

Source: AMFI, ICRA Online Research

DHFL Pramerica AMC and Edelweiss AMC were not included in the list of top 10 fastest growing AMCs as their YoY growth of 1047% and 318% were fuelled by
the acquisition of Deutsche AMC and JP Morgan AMC, respectively
ICRA Online Limited 6
Section II

INFLOW OUTFLOW ANALYSIS

 Net inflow/outflow during Q3FY17
Category wise net inflow (in Rs. Cr.) Net Inflow / Outflow (in Rs. Cr.)
180,000 Q2FY17,
FoFs Investing Overseas
144,123
150,000
Other ETFs
120,000 Q3FY16,
Q3FY17,
Gold ETF 79,278 80,801
90,000
ELSS - Equity 60,000

Gilt 30,000
0
Liquid/Money Market
Q3FY17 Q2FY17 Q3FY16
Balanced
Source: AMFI, ICRA Online Research
Equity

Infrastructure Debt Fund  In Q3FY17, MF industry’s assets expanded

even as Sensex fell 5%
Income
-70,000 -35,000 0 35,000 70,000  Inflows into debt mutual funds have been
Q3FY16 Q2FY17 Q3FY17 increasing steadily with falling bank deposit
rates
Source: AMFI, ICRA Online Research
ICRA Online Limited 8
 Equity MFs see highest net infusion in 18 months
Equity Netflow
15,000

10,000
In Rs. Crore

5,000

-5,000
Jan-13

Nov-13

Nov-14
Mar-13

Sep-13

Jan-14

Mar-14

Sep-14

Jan-15

Nov-15

Nov-16
Mar-15

Sep-15

Jan-16

Mar-16

Sep-16
May-13

Jul-13

May-14

Jul-14

May-15

Jul-15

May-16

Jul-16
Source: AMFI, ICRA Online Research; Equity includes ELSS funds as well

 In Dec 2016, equity mutual funds saw net inflow for the ninth straight month, worth Rs. 10,103 crore
 CY 2016 witnessed a net inflow of Rs. 54,875 crore compared with Rs. 90,603 crore in CY 2015 and Rs. 49,458 crore in
CY 2014

ICRA Online Limited 9

Section III

SECTOR UPDATE
 Financial services remain most preferred
Top 5 Sector (as on Dec-16) - Equity Exposure
150,000.00
Equity AUM (In Rs. Crore)

120,000.00

90,000.00

60,000.00

30,000.00

0.00
Dec-16 Sep-16 Dec-15

Financial Services Automobile IT Energy Consumer Goods

Source: AMFI, ICRA Online Research

 Financial services continued to be the most preferred sector with more than 28% of the equity AUM

 The sector witnessed more than 26% YoY increase in inflow

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 Highest inflow witnessed in IT and metals in Dec 2016

Equity Exposure of Top 5 AMC's in Top 5 Sectors (as on Dec-16)

50,000.00
Equity AUM (In Rs. Crore)

40,000.00

30,000.00

20,000.00

10,000.00

0.00
ICICI Prudential Mutual Fund HDFC Mutual Fund Reliance Mutual Fund Birla Sun Life Mutual Fund SBI Mutual Fund

Financial Services Automobile IT Energy Consumer Goods

Source: AMFI, ICRA Online Research

 Top five sectors constituted almost 65% of the total equity AUM in Dec 2016

 During the quarter, highest inflow was seen in the IT (15%) and metals (17%) sectors
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Section IV

CATEGORY PERFORMANCE
 Equity funds continue to deliver positive returns

Performance* of Equity oriented Mutual Fund categories

17.91

17.80

17.39
17.00
18.00

13.01
12.06
15.00

10.53
Returns (in %)

9.93
12.00

9.49
8.18

7.02
9.00
5.10

4.96

4.17

3.67

6.00

3.00

0.00
0.00
1 Year 3 Year 5 Year 10 Year
Diversified Funds Global Funds ELSS Index Funds

Source: ICRA Online Research; Data as of 31-Dec-16

*Compound annualized returns

 In various long-term tenures, average returns across categories have outperformed benchmark returns

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 Fall in yields post demonetisation results in outperformance of
long term debt funds
Performance* of Short Term Debt oriented Performance* of Long Term Debt oriented
Mutual Fund categories Mutual Fund categories

18.68
10.63

9.95
12.00 20.00

15.17
9.48

13.29
8.48
8.34

12.70
8.18

12.53
Returns (in %)
8.04

8.03

11.51
7.30
7.21
Returns (in %)

10.57
9.00 6.65 15.00
6.40

9.23
6.00 10.00

3.00 5.00

0.00 0.00
3 Months 6 Months 1 Year 3 Year 1 Year 3 Year 5 Year 10 Year
Liquid Funds Ultra Short Term Funds Short Term Funds Income Funds Gilt Funds

Source: ICRA Online Research; Data as of 31-Dec-16

*Compound annualised returns have been considered for periods ≥1 year; Simple annualised returns for <1 year

 In last one year, gilt mutual funds (12.53%) have topped the chart; the category got support after bond yields plunged
following the demonetisation move, which led to heightened liquidity in the banking sector
 In the short-term category, average three months’ return generated by liquid funds has been 6.40% compared with
6.76% in Q2FY17
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Section V

INDUSTRY INSIGHTS
 B15 locations generate 17% of industry AUM in Dec 2016
The rate of growth in assets for B15 locations is 33% y-o-y Higher equity participation in B-15 cities (As on Dec-16)
1,500,000 1,420,525 80% 73%
1,134,457
60% 49% 51%
1,000,000
In Rs. Cr

In %
40%
27%
500,000 285,572 20%
214,669
0%
0
T15 B15
Dec-16 Dec-15
T15 B15 Equity Oriented Scheme Debt Oriented Scheme

25% of the B15 assets are from individual category  17% of the industry assets came from B15 locations in
100% 90% Dec 2016
75%
80%  B15 locations have a better balance between equity
60% and non-equity schemes
In %

40% 25%  Retail comprises 25% of B15 assets and 10% in T15
20% 10%
locations
0%
T15 B15
Source: AMFI
Institutions Individuals

ICRA Online Limited 17

 Instrument allocation pattern in debt segment

50.0
46.8
43.8
39.6
40.0

30.0
In %

21.5
20.0 18.119.0

13.2
11.0 10.5 9.9
9.0 8.5 8.2
10.0 7.3 7.8
6.4
3.9 3.8
2.0 2.3 2.0 1.8 1.1 1.2
0.4 0.5 0.4
0.0
Equity Bond/Debentures GILT Money Market CD CP Cash Current Assets Others

Dec-16 Sep-16 Dec-15

Source: ICRA Online Research

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 Long term debt funds had a great CY 2016 due to sharp
correction in bond yields
Average Maturity trends in Income, Gilt long term & Gilt short term funds
20.00

15.00
In Years

10.00

5.00

0.00
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

Average Maturity_Income Funds Average Maturity_Gilt Long Term Average Maturity_Gilt Short Term Funds

Source: ICRA Online Research

 Average maturity spiked in Nov 2016 because of rally in bonds post demonetisation
 Average maturity eased after the Reserve Bank of India decided to keep interest rates unchanged

ICRA Online Limited 19

Section VII

REGULATORY UPDATE
 Regulator remains pro-active during the quarter
SEBI provides transparency on
regulations regarding
investment advisors
SEBI plans to allow investors
to buy MFs through digital
wallets
SEBI to set norms for instant
credit to investors’ bank
accounts
Source: Media Reports
 An investment advisor advising a particular client may charge
fees subject to the ceiling specified by the board. However, the
fees charged by the investment advisor need to be fair and
reasonable
 In order to emphasise on government’s aim to promote digital
transaction, SEBI is planning to allow investors to buy mutual
funds worth as much as Rs. 50,000 a month through digital
wallets
 SEBI is in talks to set rules regarding instant credit to investors’
bank accounts after redemption of liquid mutual fund. This, in
turn, is expected to boost inflows by attracting retail customers to
such funds
ICRA Online Limited 21
ANNEXURES
 Private sector joint ventures (predominantly Indian)
manage 59% of QAAUM
Bank
Sponsored_JV_Predominantly Bank Sponsored_Others
Foreign 8%
1%

Institutions_Indian
1%

Bank
Sponsored_JV_Predominantly Private Sector_Foreign
Indian 7%
9%

Private Sector_Indian
13%
Private
Sector_JV_Predominantly
Indian
59% Private Sector_JV_Others
1%
Private
Sector_JV_Predominantly
Foreign
*JV – Joint Venture 1%

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

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 Liquidity analysis of last 12 months

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

Equity 2.6 2.2 2.2 1.82 1.91 1.73 1.74 1.84 1.99 1.85 1.85 1.84

Specialty 0.1 0.0 0.0 0.05 0.04 0.05 0.04 0.06 0.06 0.04 0.04 0.04

Gilt 0.1 0.1 0.1 0.04 0.06 0.06 0.05 0.07 0.07 0.06 0.05 0.04

Liquid 16.2 16.7 17.4 16.98 18.85 20.07 19.02 20.31 20.96 13.61 21.66 19.38

Balanced 0.3 0.1 0.2 0.15 0.21 0.19 0.19 0.17 0.17 0.09 0.20 0.21

ETF 0.4 0.4 0.4 0.48 0.46 0.48 0.53 0.49 0.52 0.58 0.57 0.53

Fund of Funds 0.1 0.1 0.1 0.15 0.15 0.16 0.17 0.17 0.18 0.21 0.21 0.18
Dynamic/Asset
0.3 0.2 0.3 0.30 0.34 0.32 0.25 0.26 0.25 0.19 0.11 0.11
Allocation
Debt 8.2 8.8 9.1 8.28 9.52 9.48 9.32 9.49 10.04 9.60 10.21 9.97

Source: ICRA Online Research

ICRA Online Limited 24

 Contact Information

Saugat Acharya Atul Sharma Eshna Basu

+91 98209 74940 +91 96191 12544 +91 98318 27490
saugat.acharya@icraonline.com atul.sharma@icraonline.com eshna.basu@icraonline.com

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