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Mutual Fund ScreenerFor the quarter ended Dec-17

Mutual Fund Screener – What’s Inside

01Industry

Size

03Inflow Outflow

Analysis

04Sector

Update

06Industry

Insights

07AMFI

Proposals

05Category

Performance

02Investor

Trends

08Regulatory

Update

INDUSTRY SIZESection I

Industry QAAUM up 7% - crosses Rs. 22 lakh crore

Industry Quarterly Average Assets UnderManagement (QAAUM) grew for the 17th

consecutive quarter in Q3FY18

The 6.8% quarterly growth in industryassets was driven by sustained inflows inequity schemes through both lumpsumand Systematic Investment Plans (SIPs)and mark to market gains

Growth in QAAUM for the Quarter Ended Dec-17

AMCs Range

Top 5 5% to 9%

Next 10 -4% to 14%

Rest -7% to 26%

Source: AMFI; ICRA Online Research

Note: AMC list as of Dec-17 QAAUM

ICRA Online Limited 4

Dec-17,

2,236,717 Sep-17,

2,094,852

Dec-16,

1,693,339

0

600,000

1,200,000

1,800,000

2,400,000

Dec-17 Sep-17 Dec-16

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. 141,865 crore added in Q3FY18

Top 10 AMCs account 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

Qo

Q G

row

th (

In %

)

AU

M (

In R

s. C

rore

)

Top Ten AMCs

Dec-17 Sep-17 % Change QoQ

Smaller AMCs grow at a faster pace

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

0.00%

25.00%

50.00%

75.00%

100.00%

125.00%

0

25,000

50,000

75,000

100,000

Ko

tak M

ah

ind

ra

Mu

tua

l Fu

nd

DSP

Bla

ckR

oc

k

Mu

tua

l Fu

nd

Axis

Mu

tua

l Fu

nd

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

Fu

nd

BO

I A

XA

Mu

tua

l Fu

nd

Ma

hin

dra

Mu

tua

l

Fu

nd

IIFL

Mu

tua

l Fu

nd

Yo

Y G

row

th (

In %

)

AU

M (

In R

s. C

rore

)

Top 10 Fastest Growing AMCs

Dec-17 Dec-16


Private sector JVs (predominantly Indian) manage 55% of Q3FY18 QAAUM



Note: Represents change in contribution to total QAAUM from the year ago period

Year 1 – Q3FY18 vs. Q3FY17; Year 2 – Q3FY17 vs. Q3FY16

Category

As a % of

Q3FY18

QAAUM

QAAUM (In Rs. Crore) Growth

Q3FY18 Q3FY17 Q3FY16 Year 1 Year 2

Bank

Sponsored

Joint Ventures - Predominantly

Indian10.0% 222,784 153,304 109,921 45.32% 39.47%


Foreign0.5% 11,085 10,785 9,255 2.78% 16.53%

Others 7.5% 167,956 140,206 116,369 19.79% 20.48%

Institutions Indian 1.0% 22,756 18,421 12,727 23.53% 44.74%

Private Sector

Indian 17.8% 399,041 285,452 221,604 39.79% 28.81%


Indian54.8% 1,226,832 934,105 716,624 31.34% 30.35%

Foreign 6.5% 144,893 111,775 98,460 29.63% 13.52%


Foreign0.8% 17,877 13,538 13,512 32.05% 0.19%

Joint Ventures - Others 1.1% 23,493 24,807 2,163 -5.30% 1046.65%


INVESTOR TRENDSSection II

MF industry adds 44.4 lakh folios in Q3FY18

As per data from SEBI, total folio count at the end of Dec-17 stood at 6.6 crore, 7.2% higher than theprevious quarter

The mutual fund industry added close to 44.4 lakh new folios in Q3FY18 out of which 35.1 lakh werein the Equity category (including ELSS)


0.0 100.0 200.0 300.0 400.0

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)



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

63

1.7

64

9.2

66

4.9

0

5

10

15

20

500.0

540.0

580.0

620.0

660.0

700.0

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

Oc

t-1

7

No

v-1

7

De

c-1

7

1 M

on

th C

ha

ng

e (

in la

kh

s)

Fo

lio

(In

La

kh

s)

Folio growth in last 12 months

Folio 1 Month Change

Source: SEBI, ICRA Online Research

B-15 locations generate 19% of industry assets in Dec-17

The country’s smaller towns or B15 (beyondtop 15 cities) locations accounted for 18.6%of the total industry AUM at the end of

Dec-17

In the last 12 months, B15 towns havewitnessed AUM growth of 47.2% or Rs. 1.35lakh crore to reach Rs. 4.20 lakh crore



AUM Garnered by Different Channels

Dec-17 Dec-16

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

Associate Distributor 6% 16% 6% 13%

Direct Plan 45% 20% 45% 25%

Non-Associate

Distributor49% 64% 50% 62%

40%60%

29%49%

60%40%

71%51%

0%25%50%75%

100%

T15 B15 T15 B15

Dec-17 Dec-16

Equity/Non-equity Asset Mix in T-15/B-15

Locations

Equity Non-equity

Dec-17,

1,840,442Dec-16,

1,420,525

Dec-17,

420,256Dec-16,

285,572

0

500,000

1,000,000

1,500,000

2,000,000

Dec-17 Dec-16

AU

M (

In R

s. C

rore

)

Growth in Assets in T-15/B-15 Locations

T15 B15

Individual investors form a bigger portion of industry assets; institutional

category growing at a slightly slower rate

In the last four years, total assets attributable to individual and institutional investors grew ata CAGR of 30.5% and 22.2%, respectively


Source: AMFI, ICRA Online Research;

Note: Data used is month end AUM

Individual investors include Retail and HNI

Institutional investors include Corporates,

Banks/FIs and FIIs

0%

20%

40%

60%

80%

100%

Dec-17 Dec-16 Dec-15 Dec-14

Individual and Institutional Investor Composition

Individual Institutional

9.6

11.7

8.8

7.7

6.5

6.3

5.3

5.3

AUM (In Rs. Lakh Crore)

Individual investors continue to favour equity funds; institutional investors

prefer debt-oriented funds

At the end of Dec-17, equity funds formed 56% of the total asset base of individual investors,

while debt-oriented funds made up 78% of the portfolio of institutional investors of which liquidschemes constituted 26%


56%13%

0%

3%

28%

Equity Funds

Balanced Funds

Others

Liquid Funds

Debt Funds

20%

2%

0%

26%52%

Equity Funds

Balanced Funds

Others

Liquid Funds

Debt Funds


Note: Data pertains to month end AUM of Dec-17

Equity Funds include ELSS and Other ETFs

Debt Funds include gilt funds

Others include other ETFs and Fund of funds investing overseas

Individual Institutional

INFLOW OUTFLOWANALYSIS

Section III

Investors pour over Rs. 50,000 crore in equity mutual funds in Q3FY18

Investors preferred Equities (including ELSS)and Balanced funds over Income andLiquid funds, which could be due to lowyields on money market and fixed incomesecurities


-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

Q3FY17 Q2FY18 Q3FY18


13,225

108,601

79,278

0

30,000

60,000

90,000

120,000

Q3FY18 Q2FY18 Q3FY17

In R

s. C

rore

Industry-wide Net Inflow/Outflow


Robust retail participation leads to high infusion in Equity funds

Equity funds (including ELSS) saw net inflow of Rs. 52,397 crore in Q3FY18 vis-à-vis Rs. 52,025 crore inQ2FY18. Cumulative inflow into these funds surged 178% to Rs. 152,312 crore in CY17 from Rs. 54,875crore in CY16

As per data from AMFI, SIP contribution for Q3FY18 stood at Rs. 17,736 crore as against Rs. 11,291

crore in Q3FY17, a growth of 57% from the year-ago period


-3,000

3,000

9,000

15,000

21,000

Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 Aug-17 Dec-17

In R

s. C

rore

Equity Net Inflow/Outflow


Note: Equity includes ELSS funds

SECTOR UPDATE Section IV

MFs continue to bet on Banks with more than 20% exposure


Top five sectors constituted close to 48% of the total equity AUM

Over the year, three out of the top five sectors witnessed more than 50% increase in exposure(Finance ~125%, Consumer Non Durables ~79% and Banks ~74%)

0

10,000

20,000

30,000

40,000

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 (Dec-17)

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


Banks and Finance sectors see highest increase in exposure*


74.1%

125.2%

79.4% 94.2%

50.0%

120.6%

66.2%79.0%

383.9%

30.6%

0.0%

100.0%

200.0%

300.0%

400.0%

0

50,000

100,000

150,000

200,000

Ba

nks

Fin

an

ce

Co

nsu

me

r

No

n

Du

rab

les

Co

nst

ruc

tio

n

Pro

jec

t

Au

to

Po

we

r

Pe

tro

leu

m

Pro

du

cts

Au

to

An

cill

arie

s

No

n -

Fe

rro

us

Me

tals

Ph

arm

ac

eu

ti

ca

ls

Yo

Y C

ha

ng

e in

%

In R

s. C

rore

Sector-wise Exposure in Dec-17 vs. Dec-16

Dec-17 Dec-16 % change


Note: Only top-10 sectors considered

*Increase in exposure is in absolute terms

CATEGORY PERFORMANCESection V

Equity-oriented mutual funds continue to find favour

Key drivers:

Benchmark indices at lifetime high - S&P BSE Sensex and

Nifty 50 gained 28% and 29%, respectively in CY17.

Implementation of GST Act

Recapitalisation package for banks

Upgrade of India’s position in World Bank’s “Ease of doing business” list

Sovereign rating upgrade by Moody’s


37.5

14

.1

18.7

8.9

24.8

9.5

13.6

38.7

13.0

17.6

8.8

38.6

13

.9

18.7

8.3

30.4

9.3

13.2

5.5

0.00

10.00

20.00

30.00

40.00

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: *Compounded annualized returns

Data as of Dec-17

Short term and long term categories post subdued returns


Key drivers:

Government’s announcement of hiking its fiscal year borrowing amount raised investors’ concern

over overshooting of the deficit target

Increase in domestic inflationary pressure restricted MPC from lowering interest rates

Increase in global crude oil prices

6.2 6.3 6.5 7

.4

5.1 6

.1 6.4

7.8

2.4

4.6 5

.6

7.7

0.00

3.00

6.00

9.00

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


Note: *Compounded annualised returns for periods ≥1 year; Simple annualised returns for <1 year

Data as of Dec-17

4.9

7.7 8.2

7.7

2.3

7.8 8

.6

8.2

0.00

3.00

6.00

9.00

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

Equity MF inflows continue to drive the domestic equity markets


140,033

79,723

110,540

-14,171

52,977

11,622

-22,678 -20,925

40,281

65,04154,912

105,927

-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 command the largest share of assets


Note: *Classification of market cap as per MFI Explorer, only equity diversified funds were considered for analysis

0%

20%

40%

60%

80%

100%

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

In %

Investment Across Market Caps*

Large Cap Mid Cap Small Cap Debt & Other


Instrument allocation pattern in debt segment remains consistent


70.4

%

5.6

%

4.4

%

6.7

%

6.2

%

1.3

%

0.0

% 4.6

%

0.9

%

70.9

%

3.8

%

2.7

% 6.3

%

8.4

%

1.9

%

0.0

% 5.4

%

0.7

%

64.8

%

5.3

%

6.8

%

5.4

% 12.0

%

1.4

%

3.7

%

0.6

%

0%

25%

50%

75%

Bo

nd

/

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 %



Average maturity for Income and Gilt funds remains consistent


0

4

8

12

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


Note: Categorisation of Income and Gilt funds as per MFI Explorer

AMFI PROPOSALSSection VII

Budget Proposals from AMFI


AMFI has shared 17 direct tax and 11 indirect tax proposals with Finance Ministry

Proposals submitted by AMFI

Direct Tax Proposals

Introduction of debt linked

savings scheme (DLSS)

Taxation on listed debt

securities and debt mutual

funds to be aligned

Alignment of tax treatment

of retirement/pension

schemes of mutual funds

and NPS

Threshold limit in equity

oriented MF schemes to be

lowered to 50% from 65%

More

Indirect Tax Proposals

Transaction between head

office and branch of AMC

should not be treated as

supply

Eligibility of credit with

respect to spill-over of

expenses from mutual fund

scheme to AMC

Availability of input tax

credit against exit load

levied by mutual fund

schemes

More

Source: AMFI

https://www.amfiindia.com/Themes/Theme1/downloads/AMFI Budget Proposals - FY 2018-19 - Direct Taxes.pdf

https://www.amfiindia.com/Themes/Theme1/downloads/AMFI - Budget Proposals for 2018-19 - Indirect Taxes.pdf

REGULATORY UPDATESection VIII

Regulator remains vigilant (1 of 2)


SEBI provides scheme

categorisations

In an effort to end duplication of schemes, SEBI categorised MF

schemes under five different heads - equity, debt, hybrid,

solution-oriented and others. It also clarified on market

capitalisation norms for equity funds, instruments allowed for

investments for corporate bond fund and credit risk funds

SEBI directs to adopt TRI to

benchmark schemes

SEBI directed mutual fund houses to adopt Total Return Index

(TRI) to benchmark schemes as it is a more appropriate way to

measure the performance of such financial products

With the objective of enabling investors to compare the

performance of a scheme vs an appropriate benchmark, SEBI

decided that the selection of a benchmark for a mutual fund

scheme shall be in alignment with the investment objective,

asset allocation pattern and investment strategy of the

scheme

SEBI lays out approach for

selection of benchmark

Source: SEBI

Regulator remains vigilant (2 of 2)


SEBI caps cross-shareholding

in mutual funds to 10%

To avoid “potential conflict of interest”, SEBI capped the cross-

shareholding in mutual funds to 10%. Hence, a sponsor of a

mutual fund, its associate and/or its group company and its

AMC through the schemes, or otherwise collectively, may not

be allowed to have 10% or more stake in AMCs / Trustee

Companies of any other mutual funds

SEBI lays out tenures of

independent trustees,

independent directors, auditors

In order to strengthen the governance structure of mutual

funds, SEBI put in place a framework for the tenure of

independent trustees, independent directors as well as

auditors

Source: SEBI

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