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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)
Source: AMFI, ICRA Online Research
Note: QAAUM – Quarterly Average Assets Under Management
Rs. 68,495 crore added in Q4FY18
Top 10 AMCs account for ~81% of QAAUM
ICRA Online Limited 5
Source: AMFI, ICRA Online Research
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
ICRA Online Limited 6
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
Source: AMFI, ICRA Online Research
Private sector JVs (predominantly Indian) manage ~55% of Q4FY18 QAAUM
ICRA Online Limited 7
Source: AMFI, ICRA Online Research
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%
ICRA Online Limited 8
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)
ICRA Online Limited 9
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
Source: AMFI, ICRA Online Research
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
ICRA Online Limited 10
Source: AMFI, ICRA Online Research
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
ICRA Online Limited 12
-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
Source: AMFI, ICRA Online Research
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
Source: AMFI, ICRA Online Research
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
ICRA Online Limited 13
-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
ICRA Online Limited 15
✓ 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
Source: AMFI, ICRA Online Research
Banks and Finance sectors remain fund managers’ favourites*
ICRA Online Limited 16
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
Source: AMFI, ICRA Online Research
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
ICRA Online Limited 18
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
ICRA Online Limited 19
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)
ICRA Online Limited 21
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
Source: ICRA Online Research
Large-Caps continue to command the largest share of assets
ICRA Online Limited 22
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
Source: ICRA Online Research
Note: *On the basis of ICRA Online classification, only Equity Diversified funds were considered for analysis
Instrument allocation pattern in Debt segment
ICRA Online Limited 23
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
Source: ICRA Online Research
Average maturity remains steady in Q4FY18
ICRA Online Limited 24
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
Source: ICRA Online Research
Note: Categorisation of Income and Gilt funds as per ICRA Online classification
REGULATORY UPDATESection VII
Regulator remains vigilant (1 of 2)
ICRA Online Limited 26
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)
ICRA Online Limited 27
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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