mutual fund screener · pdf file · 2016-08-26mutual fund screener ... icra online...

Mutual Fund ScreenerFor the quarter ended June 2016

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 crosses Rs. 14 lakh crore

Industry QAAUM grew for the 11th consecutive period in Q1FY17

The 6.5% QoQ growth in QAAUM driven by inflows in equities and short term debt funds

31 fund houses reported QAAUM

growth in Q1FY17 compared with

27 in the last quarter

Growth in QAAUM for the quarter ended Jun 2016

AMCs Range

Top 5 5% to 12%

Next 5 1% to 8%

Next 10 -21% to 11%

Rest -19% to 27%

Source: AMFI; ICRA Online Research. AMC list based on Jun 2016 QAAUM

ICRA Online Limited 4

Jun-16,

1,441,027

Mar-16,

1,353,443

Jun-15,

1,207,801

1,050,000

1,100,000

1,150,000

1,200,000

1,250,000

1,300,000

1,350,000

1,400,000

1,450,000

1,500,000

Jun-16 Mar-16 Jun-15

In R

s. C

rore

Mutual Fund Industry (QAAUM)

Source: AMFI, ICRA Online Research; QAAUM –Quarterly Average Assets

Under Management

QoQ

6.5%

YoY

19.3%

ICICI Prudential MF retains pole position

with QoQ growth of 9.9%

The share of top-10 AMCs (in terms of QAAUM) rose to 80.5% compared with 79.5% in the last quarter


19

3,2

96

19

2,7

76

16

7,0

09

14

9,0

93

11

9,8

78

11

2,1

69

67

,59

3

62

,87

4

54

,09

1

41

,41

6

15

5,5

22

16

5,0

13

14

4,6

93

12

5,5

02

83

,69

3

92

,73

0

74

,31

2

48

,07

7

54

,49

8

36

,03

6

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

0

40,000

80,000

120,000

160,000

200,000IC

ICI

Pru

den

tial

Mu

tual

Fu

nd

HD

FC

Mu

tual

Fu

nd

Rel

ian

ce M

utu

al F

un

d

Bir

la S

un L

ife

Mutu

al

Fu

nd

SB

I M

utu

al F

un

d

UT

I M

utu

al F

un

d

Fra

nkli

n T

emp

leto

n

Mu

tual

Fu

nd

Ko

tak

Mah

ind

ra

Mu

tual

Fu

nd

IDF

C M

utu

al F

un

d

DS

P B

lack

Rock

Mu

tual

Fu

nd

Yo

Y G

row

th (

In %

)

AU

M (

In R

s. C

rore

)

Top 10 AMCs

Jun-16 Jun-15 YoY

Source: AMFI, ICRA Online Research

QAAUM of six fastest growing AMCs below

Rs. 10,000 crore

DHFL Pramerica AMC was not included in the list of top 10 fastest growing AMCs as its YoY growth

of 923% was fuelled by the acquisition of Deutsche MF.

Mirae Asset and Motilal Oswal almost

doubled corpus in the last one year and

registered highest % change in QAAUM

(YoY) of 100.7% and 97.6%, respectively

Among the larger AMCs (QAAUM > Rs.

40,000 crore), Axis, Kotak Mahindra, and

SBI Mutual Fund have shown exceptional

growth in corpus


0.00%

30.00%

60.00%

90.00%

120.00%

0

35,000

70,000

105,000

140,000

SB

I M

utu

al F

un

d

Ko

tak

Mah

ind

ra M

utu

al

Fu

nd

Ax

is M

utu

al F

un

d

L&

T M

utu

al F

un

d

Bar

od

a P

ionee

r M

utu

al

Fu

nd

Ind

iab

ull

s M

utu

al F

und

Mo

tila

l O

swal

Mu

tual

Fu

nd

BN

P P

arib

as M

utu

al F

und

Mir

ae A

sset

Mu

tual

Fun

d

Ed

elw

eiss

Mu

tual

Fun

d

Yo

Y G

row

th (

In %

)

QA

AU

M (

In R

s. C

rore

)

Top 10 fastest growing AMCs

Jun-16 Jun-15 YoY


Private sector joint ventures (predominantly Indian)

manage 58% of QAAUM


INFLOW OUTFLOW ANALYSIS

Section II

Net inflow/outflow during the quarter

Income funds saw net inflow of Rs. 38,833

crore in the quarter

Gilt funds witnessed net outflow of Rs. 1,202

crore in the quarter

-40,000 -30,000 -20,000 -10,000 0 10,000 20,000 30,000 40,000

Income

Infrastructure Debt Fund

Equity

Balanced

Liquid/Money Market

GILT

ELSS-Equity

Gold ETFs

Other ETFs

FoF Investing Overseas

In Rs. Crore

Category wise net inflow/outflow during Q1FY17 vis-a-vis

Q1FY16 & Q4FY16

Q4FY16 Q1FY16 Q1FY17



90

,44

1

85

,72

7

-27

,51

6

-40,000

-20,000

0

20,000

40,000

60,000

80,000

100,000

Q1FY17 Q1FY16 Q4FY16

In R

s. C

rore

Net inflow/outflow


Equity mutual funds see net infusion of

Rs. 9,479 crore in Q1FY17

The equity segment saw net inflows in five out of six months in CY16


-5,000

0

5,000

10,000

15,000

Jun

-13

Dec

-13

Jun

-14

Dec

-14

Jun

-15

Dec

-15

Jun

-16

In R

s. C

rore

Equity net inflow/outflow for the last 3 years


SECTOR UPDATE

Section III

Sectoral update

Top five sectors constituted more than 62% of the total

equity AUM

Highest inflow was seen in Paper (32%) and Fertilizers

& Pesticides (17%) sectors


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000


Eq

uit

y A

UM

(In

Rs.

Cro

re)

Top 5 sectors (as on Jun 30, 2016) - Equity exposure

Financial Services Energy Consumer Goods Construction Pharma


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

FundEq

uit

y A

UM

(In

Rs.

Cro

re)

Equity exposure of Top 5 AMC's in Top 5 Sectors (as

on Jun'16)

Financial Services Automobile IT Energy Consumer Goods

Financial Services continued to be the most preferred

sector with more than 14% increase in inflow

More than 27% of the equity AUM was invested in the

sector

CATEGORY PERFORMANCE

Section IV

Equity funds generate positive real returns in last 10 years

Benchmark indices (Nifty and Sensex) posted their highest quarterly gain since Jun 2014, which positively impacted

equity-oriented mutual funds


3.6

4

22

.10

12

.96

13

.14

-1.0

2

11

.67

9.9

2

2.2

7

21

.34

11

.33

14

.43

2.0

3

21

.04

12

.61

12

.10

-0.2

2

13

.28

8.5

7

9.6

4

-5.00

0.00

5.00

10.00

15.00

20.00

25.00

1 Year 3 Year 5 Year 10 Year

Ret

urn

s (i

n %

)

Performance of equity oriented mutual fund categories

Diversified Funds Global Funds Sector Funds ELSS Index Funds

Source: ICRA Online Research; Data as/of Jun 30, 2016

Greater than or Equal to 1 year Compound Annualized returns

Expectations of accommodative monetary policies across the globe

push bond yields down during the quarter

RBI’s focus on transmission of past rate-cuts through improvement in banks’ liquidity conditions supported short-term

funds

Long-term funds benefitted as central banks across the globe indicated they would take necessary measures to

mitigate the effect of BREXIT


7.8

7

7.8

1

7.8

5 8.6

3

8.7

7

8.2

6

8.0

6

8.6

79.3

8

8.7

5

8.4

1

8.6

1

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


Less than 1 year Simple Annualized returns, Greater than or Equal to 1 year

Compound Annualized returns

8.9

2

7.8

9 8.9

1

7.5

8

9.7

4

8.0

2 9.0

1

7.9

2

0.00

3.00

6.00

9.00

12.00

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


Greater than or Equal to 1 year Compound Annualized returns

INDUSTRY INSIGHTS

Section V

B15 locations generate 16.2% of the industry AUM in Jun 2016

Activity beyond the top 15 cities (referred to as B-15)

has increased in recent years, which indicates expansion

of the investor base. Improved distribution and

regulatory changes to the fee structure have helped in

increasing participation in smaller places

26%

64%

74%

36%

0%

20%

40%

60%

80%

T15 B15

In %

Higher equity participation in B-15 cities (As on Jun 2016)

Equity Oriented Scheme Debt Oriented Scheme

58%

33%42%

67%

0%

20%

40%

60%

80%

T15 B15

In %

67% of the B15 assets are from individual category

Institutions Individuals

90%

10%

76%

24%

0%

50%

100%

T15 B15

In %

24% of the individual investors are from B15

Institutions Individuals


Instrument allocation pattern in debt segment

Source: ICRA Online Research

2.4

41.3

18.8

5.4

12.3

9.4

0.3 0.9

9.2

2.2

40.2

19.1

2.2

17.1

9.4

0.1 0.4

9.4

2.3

36.7

20.0

5.3

13.911.9

0.6 0.9

8.5

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 %



Average maturity goes below FY16 levels

Higher interest rate–cut expectations in FY16 led to higher average maturity

Once rate-cut started transmitting, average maturity reduced in Q1FY17

0.00

4.00

8.00

12.00

16.00

20.00

Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16

In Y

ears

Average maturity trends in Income, GILT-long term (LT) & GILT-short term (ST) funds

Average Maturity_Income Funds Average Maturity_GILT LT Average Maturity_GILT ST


Liquidity analysis of last 12 months

Jun 2016 May 2016 Apr 2016 Mar 2016 Feb 2016 Jan 2016 Dec 2015 Nov 2015 Oct 2015 Sep 2015 Aug 2015 Jul 2015

Equity 1.72 1.84 1.99 1.85 1.85 1.84 2.07 2.08 2.00 2.05 2.05 2.04

Speciality 0.04 0.06 0.06 0.04 0.04 0.04 0.04 0.04 0.04 0.05 0.03 0.05

Gilt 0.05 0.07 0.07 0.06 0.05 0.04 0.11 0.06 0.06 0.06 0.05 0.05

Liquid 19.06 20.31 20.96 13.61 21.66 19.38 18.84 19.17 18.64 16.07 19.52 19.92

Balanced 0.19 0.17 0.17 0.09 0.20 0.21 0.24 0.18 0.17 0.19 0.17 0.17

ETF 0.53 0.49 0.52 0.58 0.57 0.53 0.50 0.48 0.54 0.57 0.53 0.51

Fund of Funds 0.17 0.17 0.18 0.21 0.21 0.18 0.17 0.17 0.19 0.20 0.19 0.18

Dynamic/Asset

Allocation0.24 0.26 0.25 0.19 0.11 0.11 0.13 0.11 0.13 0.15 0.21 0.30

Debt 9.34 9.49 10.04 9.60 10.21 9.97 9.35 10.03 9.92 9.72 11.08 11.02


RBI’s financial stability report (Jun 2016):

The mutual fund perspective

The mutual fund sector is expanding to a greater section

of the investor population

Other than SCBs, insurance companies and AMCs are the

two most dominant sectors

As of Mar 2016, AMCs had 19% exposure to the Banking

sector

Debt-oriented MF schemes’ exposure to corporate bonds

increased 4% in Sep 2015-Mar 2016

Exposure to corporate bonds that were downgraded in the

last six months increased marginally from 1.6% to 1.8% in

the same period

AMCs’ exposure to Banking sector

(Rs.

Billion)

Investment in

short-term

instruments

Investment in

capital instruments

Investment in bonds and

other long-term

instruments

PSBs 1058 140 153

PVBs 357 550 137

FBs 25 690 300

Debt mutual funds’ AUM and exposure to corporate bonds

Source: RBI’s Financial Stability report-Jun 16


REGULATORY UPDATE

Section VII

Regulator remains pro-active during the quarter

SEBI eases MF redemption

restriction norms

SEBI could allow e-commerce

companies to sell MFs

SEBI to introduce online

option for registration of MFs

SEBI to ease ad and MF

scheme sale norms

No restriction on redemption requests of up to Rs. 2 lakh

AMCs can impose restrictions for the balance amount only for a specified

period

Online registration of brokerage firms, mutual funds, and other market

intermediaries to be launched

It will cover submission of inspection and action taken reports, periodic

filings, and payment of fees as well

SEBI exploring e-portals for easy availability and reducing the cost of

mutual funds

Proposal for digitisation of financial services submitted in May 2016

SEBI planning to ease norms regarding advertisement, promotion, and sale

of MF schemes

Standard risk statement norms for AMCs might ease and certain restrictions

on MF branding activities could be removed


Disclaimer:

All information contained in this document has been obtained by ICRA Online Limited from sources believed by it to be accurate and reliable. Although reasonable

care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any kind, and ICRA Online Limited or

its affiliates or group companies and its respective directors, officers, or employees in particular, makes no representation or warranty, express or implied, as to the

accuracy, suitability, reliability, timelines or completeness of any such information. All information contained herein must be construed solely as statements of

opinion, and ICRA Online Limited, or its affiliates or group companies and its respective directors, officers, or employees shall not be liable for any losses or injury,

liability or damage of any kind incurred from and arising out of any use of this document or its contents in any manner, whatsoever. Opinions expressed in this

document are not the opinions of our holding company, ICRA Limited (ICRA), and should not be construed as any indication of credit rating or grading of ICRA for

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 · pdf file · 2016-08-26mutual fund screener ... icra online...

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