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Mutual Fund ScreenerFor the quarter ended Sep-17

Mutual Fund Screener – What’s Inside

01Industry

Size

03Inflow Outflow

Analysis

04Sector

Update

06Industry

Insights

07Regulatory

Update

05Category

Performance

02Investor

Trends

INDUSTRY SIZESection I

Industry QAAUM up 7% - Rs. 143,078 crore added in Q2FY18

Industry Quarterly Average Assets UnderManagement (QAAUM) grew for the 16th

consecutive quarter in Q2FY18

The 7.3% quarterly growth in industryassets was driven by sustained inflows inequity schemes through SystematicInvestment Plans (SIPs) and mark tomarket gains

Growth in QAAUM for the Quarter Ended Sep-17

AMCs Range

Top 5 4% to 12%

Next 10 -2% to 19%

Rest -65% to 30%

Source: AMFI; ICRA Online Research. AMC list as of Sep-17 QAAUM

ICRA Online Limited 4

Sep-17,

2,094,852 Jun-17,

1,951,775

Sep-16,

1,610,729

0

550,000

1,100,000

1,650,000

2,200,000

Sep-17 Jun-17 Sep-16

QA

AU

M (

In R

s. C

rore

)

Mutual Fund Industry (QAAUM)

Source: AMFI, ICRA Online Research; QAAUM – Quarterly

Average Assets Under Management

Top 10 AMCs accounted for ~81% of QAAUM


Source: AMFI, ICRA Online Research

0%

3%

6%

9%

12%

0

50,000

100,000

150,000

200,000

250,000

300,000

ICICI

Prudential

Mutual Fund

HDFC Mutual

Fund

Reliance

Mutual Fund

Aditya Birla

Sun Life

Mutual Fund

SBI Mutual

Fund

UTI Mutual

Fund

Kotak

Mahindra

Mutual Fund

Franklin

Templeton

Mutual Fund

DSP

BlackRock

Mutual Fund

Axis Mutual

Fund

% c

ha

ng

e Q

oQ

AU

M (

in R

s. C

rore

)

Top Ten AMCs

Sep-17 Jun-17 % Change QoQ

Smaller AMCs grew at a faster pace

Note: Edelweiss AMC was not included in the list of top 10 fastest growing AMCs as its YoY growth of 260% was fuelled by the acquisition of JP

Morgan AMC

Among the larger AMCs (QAAUM >Rs. 35,000 crore), Kotak Mahindra,DSP BlackRock, Axis, and L&TMutual Fund have shownexceptional growth in assets


QAAUM of six fastest growing AMCs below Rs. 20,000 crore

0%

30%

60%

90%

120%

150%

0

30,000

60,000

90,000

120,000

Ko

tak M

ah

ind

ra M

utu

al F

un

d

DSP

Bla

ckR

oc

k M

utu

al F

un

d

Axis

Mu

tua

l Fu

nd

L&T

Mu

tua

l Fu

nd

Mo

tila

l Osw

al M

utu

al F

un

d

Mira

e A

sse

t M

utu

al F

un

d

Ind

iab

ulls

Mu

tua

l Fu

nd

Ma

hin

dra

Mu

tua

l Fu

nd

IIFL

Mu

tua

l Fu

nd

IIFC

L M

utu

al F

un

d (

IDF)

Yo

Y G

row

th (

In %

)

AU

M (

In R

s. C

rore

)

Top ten fastest growing AMCsSep-17 Sep-16 % Change YoY


Private sector JVs (predominantly Indian) managed 58% of Sep-17 QAAUM



Note: Year 1 – Sep-17 vs. Sep-16; Year 2 – Sep-16 vs. Sep-15

CategoryIn Rs. Crore Growth

Sep-17 Sep-16 Sep-15 Year 1 Year 2

Bank

Sponsored

Joint Ventures - Predominantly Indian 204,200 144,510 98,722 41.30% 46.40%

Joint Ventures - Predominantly Foreign 11,138 11,703 9,532 -4.80% 22.80%

Joint Ventures - Others 164,011 138,848 113,766 18.10% 22.00%

Institutions Indian 23,504 16,841 11,507 39.60% 46.40%

Private

Sector

Indian 294,976 206,252 166,808 43.00% 23.60%

Joint Ventures - Predominantly Indian 1,218,191 934,769 747,691 30.30% 25.00%

Foreign 137,637 114,629 113,118 20.10% 1.30%

Joint Ventures - Predominantly Foreign 16,004 18,704 26,921 -14.40% -30.50%

Joint Ventures - Others 25,191 24,473 2,366 2.90% 934.60%


INVESTOR TRENDSSection II

MF industry added 38.2 lakh folios in Q2FY18

Total folio count at the end of Sep-17 stood at 6.2 crore, 6.6% higher than the previous quarter,according to data from the Securities and Exchange Board of India (SEBI)

In the last 12 months, 82.3 lakh new folios were added to the Equity and ELSS categories, suggestingmore investors are opting for equity funds for long-term wealth creation


0 100 200 300 400

Liquid/ Money Market

Gilt

Income

ELSS

Equity

Balanced

GOLD ETF

Other ETFs

Fund of funds investing…

Folio (In Lakhs)

Category wise Folio Count (In Lakhs)

Sep-16 Jun-17 Sep-17


51

2.9

52

0.5

52

8.2

53

7.8

54

3.9

55

4.0

56

1.4

57

1.9

58

2.3 59

4.2 60

8.5 62

0.5

0

3

6

9

12

15

500

525

550

575

600

625

Oc

t-1

6

No

v-1

6

De

c-1

6

Ja

n-1

7

Fe

b-1

7

Ma

r-17

Ap

r-1

7

Ma

y-1

7

Ju

n-1

7

Ju

l-17

Au

g-1

7

Se

p-1

7

On

e m

on

th c

ha

ng

e (

In L

ak

hs)

Fo

lio

(In

La

kh

s)

Folio growth in last 12 months

Folio 1M Change

Source: SEBI, ICRA Online Research

B-15 locations generated 18% of industry AUM in Sep-17

Assets in top 15 cities (referred to as T-15)grew 28% YoY, while that in smaller towns(referred to as B-15 locations) expanded 39%

Activity in B-15 locations has increased inrecent years

Improved distribution and regulatorychanges to the fee structure have broughtmore people into the mutual fund fold



AUM garnered by different channels

Sep-17 Sep-16

T-15 B-15 T-15 B-15

Associate Distributor 6% 15% 5% 12%

Direct Plan 46% 21% 44% 26%

Non-Associate

Distributor48% 64% 51% 62%

0

500,000

1,000,000

1,500,000

2,000,000

Sep-17 Sep-16

AU

M (

In R

s. C

rore

)

Growth in assets in T-15/B-15 locations

T15 B15

36%

58%

30%51%

64%

42%

70%49%

0%20%40%60%80%

100%

T15 B15 T15 B15

Sep-17 Sep-16

Equity/Non-equity asset mix in T-15/B-15

Locations

Equity Non-equity

INFLOW OUTFLOWANALYSIS

Section III

Investors poured Rs. 1.09 lakh crore in mutual funds in Q2FY18

Investors preferred Equities (including ELSS)and Balanced funds over Income andLiquid funds, which could be on accountof low yields on money market and fixedincome investments


-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…

In Rs. Crore

Category-wise Net Inflow/Outflow

Q2FY17 Q1FY18 Q2FY18


108,601

93,400

144,123

0

30,000

60,000

90,000

120,000

150,000

180,000

Q2FY18 Q1FY18 Q2FY17

In R

s. C

rore

Industry-wide Net Inflow/Outflow


Robust retail participation led to high infusion in Equity funds

Equity funds (including ELSS) saw net inflow of Rs. 52,025 crore in Q2FY18 vis-à-vis Rs. 28,332 crore inQ1FY18

In FY17, equity funds (including ELSS) witnessed inflows in every month with net inflows amounting toRs. 98,699 crore

Equity funds are becoming popular long-term investment avenues and people are investing mainlythrough SIPs


-5,000

0

5,000

10,000

15,000

20,000

25,000

Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17

In R

s. C

rore

Equity Net Inflow/Outflow

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

SECTOR UPDATE Section IV

MFs continued to bet on Financial Services sector with more than 30% exposure


Over the year, three out of the top five sectors witnessed more than 50% increase in exposure(Energy ~70%, Financial Services ~60% and Consumer Goods ~53%)

Top five sectors constituted more than 65% of the total equity AUM

0

7,000

14,000

21,000

28,000

35,000

Financial Services Energy Automobile Consumer Goods IT

Eq

uity

AU

M (

In R

s. C

rore

)

Equity exposure of Top 5 AMCs in Top 5 sectors (Sep-17)

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


Highest inflow witnessed in Metal and Paper Sectors


Over the year, highest inflow was seen in Metal (156%), followed by Paper (92%) and Healthcare

Services (83%) sectors

92%

156%

70%60%

37%

0%

40%

80%

120%

160%

0

60,000

120,000

180,000

240,000

Paper Metals Energy Financial Services Industrial Manufacturing

% C

ha

ng

e Y

oY

In R

s. C

rore

Sector wise Inflow in Q2FY18

Sep-17 Sep-16 % change YoY

Source: AMFI, ICRA Online Research, Net-inflow has been calculated using the market value of the holdings

CATEGORY PERFORMANCESection V

Equity-oriented mutual funds continued to find favour

Key drivers:

Benchmark index Sensex hovering above the 31,000 mark

Implementation of goods and service tax creating a conducive environment for investors

Expansion of Index of Industrial Production in Jul and Aug

Positive impact of investor education programmes and soft performance of other asset classes


Source: ICRA Online Research; Data as of Sep-17; *Compound Annualised returns

16.9

5

13.4

1 17.6

0

10.4

7

17

.06

13.0

1 17.4

0

9.8

2

14.8

6

9.0

0 13.3

8

0.0

0

14.2

3

7.9

6 12

.29

6.5

1

17.0

7

12

.61

15.8

7

9.7

9

0.00

10.00

20.00

30.00

1 Year 3 Years 5 Years 10 Years

Re

turn

s (i

n %

)

Performance* of Equity-Oriented Mutual Fund Categories

Diversified Funds ELSS Global Funds Index Funds Sector Funds

Short term funds attracted investors amid rising savings account deposits


Source: ICRA Online Research; Data as of Sep-17; *Compound annualised returns for periods ≥1 year; Simple annualised returns for <1 year

6.5

0

6.4

9

6.4

7 7.5

6

7.0

3

7.1

5

7.0

5 8.0

3

6.8

1

7.6

5

7.0

8 8.6

3

0.00

2.50

5.00

7.50

10.00

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

7.1

7

11.0

4

9.4

9

8.7

4

7.3

2 9.4

2

8.7

3

7.9

8

0.00

3.50

7.00

10.50

14.00

1 Year 3 Years 5 Years 10 Years

Re

turn

s (i

n %

)

Performance* of Long-Term Debt Oriented

Categories

Gilt Fund Income Fund

Short term funds became the cynosure of market participants amid rising savings accountdeposits, triggered by demonetisation

Long term papers posted subdued returns as five-month high retail inflation lowered probability ofa rate-cut by MPC (Monetary Policy Committee)

INDUSTRY INSIGHTSSection VI

MFs drove country’s equity markets rather than foreign investors


Source: ICRA Online Research

140,033

79,723

110,540

-14,171

52,977

-5,279

-22,678 -20,925

40,281

65,041 54,912

76,906

-50,000

0

50,000

100,000

150,000

FY13 FY14 FY15 FY16 FY17 FY18TD

In R

s. C

rore

FPI/FII & Mutual Fund Investment Trends in Equity Markets

FPI/FII MF

Large Caps commanded the largest share of assets



*On the basis of MFI market cap classification, only equity diversified funds were considered for analysis

0%

20%

40%

60%

80%

100%

Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17

In %

Investment Across Market Caps*

Large Cap Mid Cap Small Cap Debt & Others

Instrument allocation pattern in debt segment



70.9

7%

3.7

6%

2.6

6%

6.3

2%

8.3

0%

0.0

0%

1.8

7%

0.0

2% 5.4

3%

0.6

7%

60.7

0%

2.0

0%

10.2

4%

6.5

9%

14.3

2%

0.0

0%

1.2

9%

4.5

3%

0.3

3%

0.0

0%

70.6

2%

3.1

5%

2.6

2% 7.1

2%

8.4

9%

0.0

0% 1

.35

%

0.0

2% 5.6

1%

1.0

3%

0%

25%

50%

75%

Bo

nd

/De

be

ntu

re

Ca

sh &

Eq

uiv

ale

nts

CD

CP

Gilt

Go

ld

Oth

ers

REIT

s &

InvIT

s

SD

L

T B

ill

In %

Sep-17 Sep-16 Jun-17

Average maturity did not change much in Q2FY18



0

5

10

15

Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17

Ave

rag

e M

atu

rity

(In

Ye

ars

)

Average Maturity Trends in Income, Gilt Long-Term & Gilt Short-Term Funds

Income Fund Gilt Long-Term Gilt Short-Term

Analysis of cash holding in last 12 months



Note: Numbers in the table denote the categories’ average percentage exposure to cash & cash equivalents; red denotes highest whereas

dark green denotes lowest

Category Sep-17 Aug-17 Jul-17 Jun-17 May-17 Apr-17 Mar-17 Feb-17 Jan-17 Dec-16 Nov-16 Oct-16

Equity 2.9 2.7 2.6 2.4 2.4 2.2 2.4 2.3 2.4 2.6 2.2 2.2

Specialty 0.1 0.0 0.1 0.0 0.1 0.1 0.0 0.1 0.1 0.1 0.0 0.0

Gilt 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.1 0.1

Liquid 16.5 18.8 17.8 17.1 20.2 19.7 16.3 19.5 18.7 16.2 16.7 17.4

Balanced 0.4 0.3 0.3 0.3 0.3 0.2 0.2 0.3 0.3 0.3 0.1 0.2

ETF 0.3 0.3 0.3 0.4 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4

Fund of Funds 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Dynamic/Asset

Allocation0.3 0.3 0.4 0.3 0.3 0.3 0.3 0.3 0.4 0.3 0.2 0.3

Debt 5.2 6.6 6.8 5.5 7.1 7.2 5.6 8.7 8.2 8.2 8.8 9.1

REGULATORY UPDATESection VII

ICRA Online Limited Source: Media Reports

SEBI categorised MF schemes under five different heads -- equity, debt, hybrid,

solution-oriented and others -- in an effort to end duplication of schemes

Association of Mutual Funds in India announced mutual funds will not be

allowed to open any new folio without obtaining customers' Aadhaar

numbers, with effect from Jan 1, 2018

SEBI asked MF houses to benchmark equity schemes against total return

index as the measure will exhibit a truer picture of the scheme’s

performance against its benchmark

The government introduced a new Central Public Sector Enterprise ETF

named Bharat 22 ETF (B22E) to be managed by ICICI Prudential Asset

Management Co. Ltd. It will track the performance of 22 select

companies disinvested by the government

Regulator remained vigilant

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