mutual fund screener · 2017-01-25 · mutual fund screener for the quarter ended dec-16 ... fund...

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%

ICRA Online Limited 5

-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


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


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



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.)


-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


-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



0.00

30,000.00

60,000.00

90,000.00

120,000.00

150,000.00


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



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


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


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


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


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 %


Long term debt funds had a great CY 2016 due to sharp

correction in bond yields


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


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


Source: Media Reports

ANNEXURES

Private sector joint ventures (predominantly Indian)

manage 59% of QAAUM


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


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


Disclaimer:

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any instruments that have been issued or are to be issued by any entity.

Contact Information

Saugat Acharya

+91 98209 74940

[email protected]

Atul Sharma

+91 96191 12544

[email protected]

Eshna Basu

+91 98318 27490

[email protected]

mutual fund screener · 2017-01-25 · mutual fund screener for the quarter ended dec-16 ... fund...

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