Post on 22-Mar-2020
transcript
Mutual Fund ScreenerFor the quarter ended Dec-16
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, Rs. 82,610 cr
added in Q3FY17
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
Growth in QAAUM for the quarter ended Dec 2016
AMCs RangeCount of AMCs
Growth De-growth
Top 5 4% to 7% 5 0
Next 10 -4% to 17% 9 1
Rest -20% to 53% 13 12Source: 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
ICRA Online Limited 41KPMG Report (Nov-16) – Distribution disrupted: Building a zillion distributors
Dec-16,
1,693,339 Sep-16,
1,610,729
Dec-15,
1,316,012
0
500,000
1,000,000
1,500,000
2,000,000
Dec-16 Sep-16 Dec-15
In R
s. C
rore
Mutual Fund Industry (QAAUM)
Source: AMFI, ICRA Online Research; QAAUM – Quarterly Average Assets
Under Management
QoQ
5.1%
YoY
28.7%
Assets under management of the mutual fund industry
likely to grow at a CAGR of 19% between FY15-FY20
and cross Rs. 30 lakh crore in 20201
Top 10 AMCs account for 97.6% of incremental
QAAUM in Q3FY17
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%
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-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
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
Kotak
Mahindra
Mutual Fund
Franklin
Templeton
Mutual Fund
DSP
BlackRock
Mutual Fund
IDFC Mutual
Fund
Qo
Q G
row
th (
In %
)
QA
AU
M (
In R
s. C
rore
)
Top Ten AMCs
Dec-16 Sep-16 QoQ
Source: AMFI, ICRA Online Research
QAAUM of three fastest growing AMCs
below Rs. 10,000 cr
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
Mirae Asset and Indiabulls doubled their
corpus in the last one year and registered
highest % change in QAAUM (YoY) of
126.4% and 108.0%, respectively
Among the larger AMCs (QAAUM > Rs.
35,000 crore), SBI, Kotak Mahindra, DSP
BlackRock, Axis, and L&T Mutual Fund
have shown exceptional growth in corpus
in the last one year
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0.00%
35.00%
70.00%
105.00%
140.00%
0
30,000
60,000
90,000
120,000
150,000
Mir
ae A
sset
MF
India
bu
lls
MF
Mo
tila
l O
swal
MF
DS
P B
lack
Rock
MF
Ko
tak M
ahin
dra
MF
LIC
MF
Ax
is M
F
SB
I M
F
L&
T M
F
Qu
antu
m M
F
Yo
Y G
row
th (
In %
)
QA
AU
M (
In R
s. C
rore
)
Top ten fastest growing AMCs
Dec-16 Dec-15 YoY
Source: AMFI, ICRA Online Research
INFLOW OUTFLOW ANALYSIS
Section II
Net inflow/outflow during Q3FY17
In Q3FY17, MF industry’s assets expanded
even as Sensex fell 5%
Inflows into debt mutual funds have been
increasing steadily with falling bank deposit
rates
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Source: AMFI, ICRA Online Research
Q3FY17,
79,278
Q2FY17,
144,123
Q3FY16,
80,801
0
30,000
60,000
90,000
120,000
150,000
180,000
Q3FY17 Q2FY17 Q3FY16
Net Inflow / Outflow (in Rs. Cr.)
Source: AMFI, ICRA Online Research
-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
FoFs Investing Overseas
Category wise net inflow (in Rs. Cr.)
Q3FY16 Q2FY17 Q3FY17
Equity MFs see highest net infusion in 18 months
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
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-5,000
0
5,000
10,000
15,000
Jan-1
3
Mar
-13
May
-13
Jul-
13
Sep
-13
Nov-1
3
Jan-1
4
Mar
-14
May
-14
Jul-
14
Sep
-14
Nov-1
4
Jan-1
5
Mar
-15
May
-15
Jul-
15
Sep
-15
Nov-1
5
Jan-1
6
Mar
-16
May
-16
Jul-
16
Sep
-16
Nov-1
6
In R
s. C
rore
Equity Netflow
Source: AMFI, ICRA Online Research; Equity includes ELSS funds as well
SECTOR UPDATE
Section III
Financial services remain most preferred
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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Source: AMFI, ICRA Online Research
0.00
30,000.00
60,000.00
90,000.00
120,000.00
150,000.00
Dec-16 Sep-16 Dec-15
Eq
uit
y A
UM
(In
Rs.
Cro
re)
Top 5 Sector (as on Dec-16) - Equity Exposure
Financial Services Automobile IT Energy Consumer Goods
Highest inflow witnessed in IT and metals in Dec 2016
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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
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 Fund
Eq
uit
y A
UM
(In
Rs.
Cro
re)
Equity Exposure of Top 5 AMC's in Top 5 Sectors (as on Dec-16)
Financial Services Automobile IT Energy Consumer Goods
CATEGORY PERFORMANCE
Section IV
Equity funds continue to deliver positive returns
In various long-term tenures, average returns across categories have outperformed benchmark returns
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5.1
0
17
.91
17
.80
10
.53
4.9
6
8.1
8
12
.06
0.0
0
4.1
7
17
.00
17
.39
9.4
9
3.6
7
9.9
3
13
.01
7.0
2
0.00
3.00
6.00
9.00
12.00
15.00
18.00
1 Year 3 Year 5 Year 10 Year
Ret
urn
s (i
n %
)
Performance* of Equity oriented Mutual Fund categories
Diversified Funds Global Funds ELSS Index Funds
Source: ICRA Online Research; Data as of 31-Dec-16
*Compound annualized returns
Fall in yields post demonetisation results in outperformance of
long term debt funds
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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6.4
0
6.6
5
7.3
0
8.0
3
7.2
1 8.1
8
8.3
4
8.4
8
8.0
4
10
.63
9.9
5
9.4
8
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
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
9.2
3
13
.29
11
.51
10
.57
12
.53
18
.68
15
.17
12
.70
0.00
5.00
10.00
15.00
20.00
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
INDUSTRY INSIGHTS
Section V
B15 locations generate 17% of industry AUM in Dec 2016
17% of the industry assets came from B15 locations in
Dec 2016
B15 locations have a better balance between equity
and non-equity schemes
Retail comprises 25% of B15 assets and 10% in T15
locations
ICRA Online Limited 17
Source: AMFI
1,420,525
1,134,457
285,572214,669
0
500,000
1,000,000
1,500,000
Dec-16 Dec-15
In R
s. C
r
The rate of growth in assets for B15 locations is 33% y-o-y
T15 B15
27%
49%
73%
51%
0%
20%
40%
60%
80%
T15 B15
In %
Higher equity participation in B-15 cities (As on Dec-16)
Equity Oriented Scheme Debt Oriented Scheme
90%
75%
10%
25%
0%
20%
40%
60%
80%
100%
T15 B15
In %
25% of the B15 assets are from individual category
Institutions Individuals
Instrument allocation pattern in debt segment
Source: ICRA Online Research
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2.0
46.8
18.1
6.4
9.07.3
0.41.8
8.2
2.3
43.8
19.0
3.9
11.0
8.5
0.5 1.1
9.9
2.0
39.6
21.5
3.8
13.2
10.5
0.4 1.2
7.8
0.0
10.0
20.0
30.0
40.0
50.0
Equity Bond/Debentures GILT Money Market CD CP Cash Current Assets Others
In %
Dec-16 Sep-16 Dec-15
Long term debt funds had a great CY 2016 due to sharp
correction in bond yields
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0.00
5.00
10.00
15.00
20.00
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
In Y
ears
Average Maturity trends in Income, Gilt long term & Gilt short term funds
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
REGULATORY UPDATE
Section VII
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
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
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
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
ICRA Online Limited 21
Source: Media Reports
ANNEXURES
Private sector joint ventures (predominantly Indian)
manage 59% of QAAUM
ICRA Online Limited 23
Bank
Sponsored_JV_Predominantly
Foreign
1%
Bank
Sponsored_JV_Predominantly
Indian
9%
Bank Sponsored_Others
8%
Institutions_Indian
1%
Private Sector_Foreign
7%
Private Sector_Indian
13%
Private Sector_JV_Others
1%Private
Sector_JV_Predominantly
Foreign
1%
Private
Sector_JV_Predominantly
Indian
59%
*JV – Joint Venture
Source: AMFI, ICRA Online Research, data pertains to Dec-16
Liquidity analysis of last 12 months
ICRA Online Limited 24
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
Allocation0.3 0.2 0.3 0.30 0.34 0.32 0.25 0.26 0.25 0.19 0.11 0.11
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
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