MF assets fall by 4.5% in Q3 2013: CRISIL

India Infoline News Service | Mumbai |

Equity mutual funds’ average AUM fell by 6% or Rs 127 bn – highest fall in the last seven quarters – to Rs 1.86 trillion in the September quarter

Indian mutual funds’ average assets under management (AUM) fell by 4.5% or Rs 384 bn to Rs 8.08 trillion during the quarter ended September 2013 compared to Rs 8.47 trillion in the previous quarter (excluding fund of funds) as per the latest numbers released by the Association of Mutual Funds in India (AMFI).

The quarter marked the sharpest fall in mutual fund assets since December 2010 as investor sentiments were hurt due to volatility in equity and debt markets following the weak Indian currency. On the category front, money market and ultra short term debt funds’ AUM declined by Rs 231 bn and Rs 183 bn, respectively, while equity funds lost Rs 127 bn. However, fixed maturity plans (FMPs) saw inflows of Rs 142 bn in the quarter on the back of rising yields. Most mutual fund houses (34 out of 44) recorded a fall in their assets during the quarter. Share of direct plans increased marginally over the quarter to 26% of the industry’s AUM vis-à-vis 25% in the previous quarter.

AUM of money market and ultra short term debt funds post record fall
Consolidated assets of money market and ultra short term funds saw a fall of Rs 414 bn in the latest quarter, the biggest loss for the combined categories since the AMFI started declaring average AUM numbers in September 2010. The fall in assets was due to heightened volatility in the categories post the liquidity tightening measures announced by the Reserve Bank of India (RBI) since mid-July 2013 to curb the fall in the Indian rupee. AUM of liquid/ money market funds fell by 12% or Rs 231 bn to Rs 1.71 trillion while AUM of ultra short term debt funds fell by 17% or Rs 183 bn to Rs 869 bn during the quarter.

FMPs witness sharpest rise in assets since March 2011 quarter
Assets of FMPs rose by Rs 142 bn in the latest quarter, the highest gain recorded by the category since January-March 2011, as investors chose the category to benefit from the rise in yields (an outcome of the liquidity tightening measures by the RBI). The benchmark 10-year government bond yield touched a 5-year high of 9.23% during the quarter and ended at 8.77% as on September 30, 2013; the yield was at 7.44% as on June 28, 2013.  As many as 159 of the 167 new fund offers (NFOs) launched during this period were FMPs compared to 54 FMPs launched in the previous quarter. FMPs are closed-ended debt oriented mutual funds which lock in the high yields over the period of the scheme. They also provide tax benefits in terms of indexation (where returns are adjusted for inflation) if held for more than one year.

Equity funds’ assets saw highest fall in the past seven quarters
Equity mutual funds’ average AUM fell by 6% or Rs 127 bn – highest fall in the last seven quarters – to Rs 1.86 trillion in the September quarter led by outflows and mark to market (MTM) fall. The underlying market, represented by the CNX Nifty, fell by 2% during the quarter due to adverse global and domestic economic cues.

Gold ETFs’ average AUM saw a marginal rise
Gold ETFs saw a 1% rise in assets due to MTM gains as local gold prices, represented by the CRISIL Gold Index, rose over 18% during the quarter. The rise in domestic gold price was aided by an increase in global US dollar denominated gold price, and weakening of the Indian rupee against the US dollar. The category, however, saw redemptions of Rs 7 bn during the first two months of the quarter as per the latest information available from AMFI.

HDFC Mutual Fund retains top AUM position
HDFC Mutual Fund retained its top position by AUM across fund houses in the September quarter with respect to total assets managed. However, the fund’s average AUM was down by Rs 19 bn or 1.8% to Rs 1.03 trillion. Reliance Mutual Fund maintained the second position at Rs 932 bn, down by 4.6% or Rs 45 bn. ICICI Prudential Mutual Fund was ranked third in the asset tally at Rs 852 bn; its average assets were down by Rs 65 bn or 7.1%. Share of the top five mutual funds’ assets was 53% in the September quarter (same as the previous quarter) while the share of top 10 funds’ assets was 79% (78% in the previous quarter). The bottom 10 fund houses continued to occupy less than 1% of the average AUM.

Out of the 44 fund houses, 34 posted a fall in AUM in the quarter. ICICI Prudential Mutual Fund registered the highest fall in assets in absolute terms, down by Rs 65 bn to Rs 852 bn, followed by UTI Mutual Fund, whose assets fell by Rs 46 bn to Rs 701 bn in the quarter. Ten AMCs witnessed a rise in their average AUM led by Franklin Templeton Mutual Fund (in absolute terms), whose average assets rose by Rs 20 bn to Rs 437 bn.

Table 1 – Category-wise average AUM (Rs bn)
Mutual Fund Categories
Jul-Sep 2013
Apr-Jun 2013
Absolute Change
% Change
Equity
1859
1987
-127
-6.4
Liquid/Money market
1711
1942
-231
-11.9
Ultra short term
869
1053
-183
-17.4
Short term debt
771
728
43
5.9
Long term debt
1219
1120
99
8.8
Gilt
84
86
-3
-3.4
Fixed maturity plans (FMPs)
1086
944
142
15.0
Other debt-oriented funds
346
472
-126
-26.7
Gold ETFs
107
106
1
1.0
Others
32
30
2
6.9
Total
8083
8467
-384
-4.5
Source - CRISIL Mutual Fund Database
 
Table 2 – Category-wise average AUM of direct plans (Rs bn)

Mutual Fund Categories
Jul-Sep 2013
Apr-Jun 2013
Absolute Change
% Change
Equity
56
44
12
26.5
Liquid/Money market
917
1040
-123
-11.8
Ultra short term
274
359
-85
-23.8
Short term debt
174
150
24
15.9
Long term debt
173
139
34
24.2
Gilt
21
17
4
26.0
Fixed maturity plans (FMPs)
452
303
149
49.3
Other debt-oriented funds
41
87
-46
-53.3
Gold ETFs
NA
NA
NA
NA
Others
2
1
1
100.0
Total
2110
2140
-30
-1.4
Source - CRISIL Mutual Fund Database
 
Table 2 – Top 10 AMCs by average AUM (Rs bn)

Mutual Fund
Avg AUM
Jul-Sep 2013

Avg AUM
Apr-Jun 2013

Change (Rs bn)
% Change
HDFC Mutual Fund
1030
1050
-19
-1.84
Reliance Mutual Fund
932
978
-45
-4.63
ICICI Prudential Mutual Fund
852
917
-65
-7.11
Birla Sun Life Mutual Fund
773
798
-25
-3.14
UTI Mutual Fund
701
747
-46
-6.22
SBI Mutual Fund
587
592
-5
-0.77
Franklin Templeton Mutual Fund
437
417
20
4.71
IDFC Mutual Fund
395
389
6
1.54
Kotak Mahindra Mutual Fund
348
372
-24
-6.44
DSP BlackRock Mutual Fund
305
330
-26
-7.73
 

 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.