Assets of Mutual Fund Industry declines by 5.3% in September 2014 on Sequential Basis

Equity funds witness highest inflows

Total Assets Under Management (AUM) of the mutual fund (MF) industry decreased by 5.3% (by Rs 53409 crore) to Rs 9.59 lakh crore in September 2014 after witnessing 0.6% rise (by Rs 6372 crore) to Rs 10.12 lakh crore in August 2014. September month saw the second lowest AUM in FY15 after April 2014. The AUM of all categories witnessed rise expect for Income, Liquid, Gold ETF, other ETF and Fund of Funds Investing Overseas categories. Equity, Balanced, Gilt Funds and ELSS-Equity categories witnessed net inflows, while all the other categories witnessed net outflows. Moreover, Liquid funds saw highest outflows, while equity funds registered inflows for the sixth consecutive month. However, AUM of the industry grew by 28.6% (or by Rs 2.13 lakh crore) YoY in September.  Net outflow from the industry stood at Rs 69664 crore in September, as against net outflow of Rs 13035 crore in August 2014. The outflows were led by Income funds and Liquid Funds, supported by outflows from Gold ETF, other ETF and Fund of Funds Investing Overseas categories.  Funds mobilized from 45 newly launched schemes in September stood at Rs 5065 crore, out of which Rs 3317 crore came from 37 income funds (3 open ended, 33 close ended and 1 interval), Rs 1617 crore came from 5 equity schemes, Rs 105 crore from 2 gilt funds and Rs 26 crore from one scheme launched under other ETFs.  Average AUM rises 7% in Q2FY15 q-o-q Average assets under management (AAUM) of the mutual fund (MF) industry increased 7.24% (by Rs 71453 crore) to Rs 10.59 lakh crore during the quarter ended September 2014 as against Rs 9.87 lakh crore registered during the quarter ended June 2014, making it the fourth quarter of rise after fall in September 2013 quarter. The quarterly rise in AAUM is largely on account of gains in equity markets. Besides, retail participation in equity schemes has increased significantly during the recent months.  On quarterly basis, of the 43 mutual funds, 35 fund houses registered rise in AAUM, while the rest resulted in fall during the September quarter. There were four mutual funds whose AAUM fell by over 10% and the names included — Sahara, Baroda Pioneer, LIC Nomura and Peerless. In the quarter ended September 2014 there were 09 fund houses which witnessed a rise in their average quarterly AUM in the range of 11% to 79%, while 25 AMCs saw a rise in the AUM in the range of 2%-9%.  Indiabulls posted more than 100% rise in AAUM, from Rs 1423.65 crore to Rs 2905.36 crore, the highest among the fund houses which witnessed rise in AAUM. It was followed by Edelweiss which posted 79.38% rise.  Among the top five fund houses — HDFC, Reliance, ICICI Prudential, Birla Sun Life and UTI — Birla Sun Life is the newest entrant in the category of having at least Rs 1 lakh crore of corpus under management. It is the second fund house to do so this year. ICICI Prudential AMC made it to the mark in March. This has made Birla Sun Life the country's fourth largest fund house, after HDFC, ICICI Prudential and Reliance.  AUM of mutual funds for the Quarter Ended September 2014 *   Mutual Fund Name AUM (Rs CR) September 2014 ^ AUM (Rs CR) June 2014 ^ Change (Rs CR) VAR (%) Axis Mutual Fund 22508.10 20267.67 2240.43 11.05 Baroda Pioneer Mutual Fund 7100.59 8176.16 -1075.57 -13.15 Birla Sun Life Mutual Fund 102615.86 98555.78 4060.07 4.12 BNP Paribas Mutual Fund 3921.45 3661.41 260.04 7.10 BOI AXA Mutual Fund 2519.15 2376.91 142.23 5.98 Canara Robeco Mutual Fund 8785.31 6481.75 2303.56 35.54 Deutsche Mutual Fund 22507.55 20878.26 1629.28 7.80 DSP BlackRock Mutual Fund 37482.63 33112.51 4370.11 13.20 Edelweiss Mutual Fund 379.70 211.67 168.03 79.38 Escorts Mutual Fund 0.00 264.13 - - Franklin Templeton Mutual Fund 55611.15 50986.71 4624.45 9.07 Goldman Sachs Mutual Fund 6498.21 6179.20 319.01 5.16 HDFC Mutual Fund 141480.78 130035.80 11444.98 8.80 HSBC Mutual Fund 8877.88 8274.66 603.21 7.29 ICICI Prudential Mutual Fund 127663.50 118055.70 9607.80 8.14 IDBI Mutual Fund 7096.73 6742.35 354.38 5.26 IDFC Mutual Fund 45737.97 43694.24 2043.73 4.68 IIFCL Mutual Fund (IDF) 313.85 306.92 6.93 2.26 IIFL Mutual Fund 202.03 210.00 -7.97 -3.80 IL&FS Mutual Fund (IDF) 0.00 716.54 - - Indiabulls Mutual Fund 2905.36 1423.65 1481.71 104.08 ING Mutual Fund 534.58 557.47 -22.89 -4.11 JM Financial Mutual Fund 11976.14 6957.22 5018.92 72.14 JPMorgan Mutual Fund 15379.68 14543.70 835.97 5.75 Kotak Mahindra Mutual Fund 37444.75 35520.79 1923.95 5.42 L&T Mutual Fund 20672.71 19894.04 778.67 3.91 LIC NOMURA Mutual Fund 8158.50 9489.39 -1330.89 -14.03 Mirae Asset Mutual Fund 1244.86 936.53 308.33 32.92 Motilal Oswal Mutual Fund 1047.50 758.46 289.04 38.11 Peerless Mutual Fund 2494.24 3509.49 -1015.26 -28.93 PineBridge Mutual Fund 667.18 635.84 31.34 4.93 PPFAS Mutual Fund 478.90 442.89 36.01 8.13 Pramerica Mutual Fund 2060.22 1908.76 151.46 7.93 PRINCIPAL Mutual Fund 4753.58 4848.11 -94.53 -1.95 Quantum Mutual Fund 489.57 414.01 75.56 18.25 Reliance Mutual Fund 122068.36 112914.39 9153.97 8.11 Religare Invesco Mutual Fund 17647.43 16142.23 1505.19 9.32 Sahara Mutual Fund 148.19 165.27 -17.08 -10.34 SBI Mutual Fund 72849.89 69212.86 3637.04 5.25 Shriram Mutual Fund 29.33 25.96 3.37 12.96 Sundaram Mutual Fund 18943.56 17672.93 1270.63 7.19 Tata Mutual Fund 24543.84 23022.48 1521.35 6.61 Taurus Mutual Fund 4410.85 4082.95 327.90 8.03 Union KBC Mutual Fund 3191.64 3531.44 -339.80 -9.62 UTI Mutual Fund 83249.91 79440.93 3808.98 4.79 Grand Total 1058693.18 987240.18 71453.00 7.24 * AUM pertains to 45 Mutual funds ^ Data for Mutual Funds is as at the end of the respective quarter     These top five fund houses gained an aggregate of Rs 5.77 lakh crore in their AAUM over the last quarter. Among the top 5 players, HDFC MF was the biggest gainer as its AAUM increased by 8.8% or by Rs 11444.98 crore to Rs 1.41 lakh crore over that in June 2014, retaining top position. Birla Sun Life Mutual Fund gained 4.12% or Rs 4060.07 crore during the quarter and its AAUM stood at Rs 1.03 lakh crore. ICICI Prudential and Reliance MF both grew 8.1%, to Rs 1.27 lakh crore and Rs 1.22 lakh crore, respectively. UTI MF grew its assets by 4.8% but is still way behind from the Rs 1 lakh crore mark, at Rs 82,250 crore. Share of the top five mutual funds' assets was 55% in the September quarter.  Of the 43 operational MF entities, only 08 saw a fall in assets. These were Baroda Pioneer, IIFL, Sahara, LIC Nomura, ING, Peerless, Principal and Union KBC. Equity & Debt Investments by Mutual Funds Domestic mutual funds turned out to be net buyers in equity in September 2014. Mutual Funds were net buyers in equities worth Rs 4171.5 crore in September 2014, as against net buying of Rs 6957.4 crore in August 2014. In September out of 22 trading sessions mutual funds were net buyers in equity in 15 trading sessions and net sellers in remaining 07 trading sessions. Net buying in equity was recorded highest at Rs 1300.7 crore on 26 September 2014 while net selling recorded high at Rs 283.7 crore on 09 September.  Transactions by mutual funds in September 2014     Equity (Rs in crore) Debt (Rs in crore) Transaction Date Gross Purchases Gross Sales Net Purchases / Sales Gross Purchases Gross Sales Net Purchases/ Sales 01-Sep-14 783.6 992.8 -209.2 8578.5 6584.5 1994 02-Sep-14 1008.4 844.4 164 6930.3 4721.3 2209.1 03-Sep-14 947.8 848 99.8 7560.1 5468.4 2091.7 04-Sep-14 710.4 822.6 -112.2 6420.9 3707.3 2713.6 05-Sep-14 565.1 632 -66.9 11364.5 4744.7 6619.9 08-Sep-14 795.3 722.1 73.2 4813.1 2897.6 1915.5 09-Sep-14 493.9 777.6 -283.7 4979.6 6763 -1783.4 10-Sep-14 654.6 800 -145.4 7014.8 5824.4 1190.4 11-Sep-14 859.2 887.5 -28.3 5629.8 3882.4 1747.3 12-Sep-14 956.8 744.2 212.7 4818.3 3029.5 1788.8 15-Sep-14 797.5 812 -14.5 6297.3 6414.8 -117.5 16-Sep-14 1002.2 714.3 287.9 5041.1 4552.8 488.2 17-Sep-14 767.2 434.5 332.7 6645.7 4201.7 2444 18-Sep-14 901.5 446.9 454.6 5866 10136.2 -4270.2 19-Sep-14 702.5 541.9 160.6 11650.7 7956.6 3694.2 22-Sep-14 681 540.3 140.7 7143.4 4360.2 2783.1 23-Sep-14 1223.5 1044.7 178.9 6871.6 6951.4 -79.8 24-Sep-14 889.5 646.8 242.7 4996.2 4229.1 767.1 25-Sep-14 1819 1378.9 440 9108.2 8163.1 945.1 26-Sep-14 1766.5 465.8 1300.7 6569 7210 -641 29-Sep-14 833.7 445.9 387.8 8421.5 10075.7 -1654.3 30-Sep-14 1163 607.6 555.4 4419.5 5848.6 -1429.2 Total for September 20322.2 16150.8 4171.5 151140.1 127723.3 23416.6 Mutual Funds were net buyers in debt to the tune of Rs 23416.6 crore in September 2014.  Out of the 22 trading sessions in September mutual funds were net buyers in debt in 15 trading sessions and net sellers in remaining 07 sessions. Net buying in debt was recorded highest at Rs 6619.9 on 05 September 2014 while net selling recorded high at Rs 4270.2 crore on 18 September. Equity Funds Assets rise AUM of equity funds increased 5.4% (by Rs 12764 crore) to Rs 2.48 lakh crore in September 2014 over August 2014. The assets of equity-linked saving schemes (ELSS) increased by 2.8% (by Rs 891 crore) to Rs 32812 crore. Meanwhile, Equity Funds registered a net inflow of Rs 7789 crore for the month and ELSS Funds saw net inflow to a tune of Rs 157 crore. Thus, total equity funds witnessed net inflow of Rs 7946 crore.  Rise in AUM during September was primarily due to inflows in equity funds, which was aided by a strong stock market. Besides, retail participation in equity schemes has increased significantly during the recent months. Net inflows in equity funds totaled to Rs 33790 crore in FY15 till September 2014. This is higher than net outflows of Rs 5354 crore in the corresponding period of previous year. The weightage of equity funds increased to 26% of the total assets of the industry in September 2014 as compared to 19% in September 2013 and 23% in August 2014. Net outflows from ELSS totaled to Rs 620 crore in FY15 till September 2014, which is lower than net outflows of Rs 1001 crore in the corresponding period of previous year. The weightage of ELSS category, of the total assets of the industry stood at 3% in September 2014, unchanged from August 2014 and September 2013.  Liquid Funds AUM of Liquid Funds decreased by 24.7% (by Rs -60510 crore) to Rs 1.85 lakh crore primarily due to net outflows of Rs 67318 crore, after witnessing the highest inflows in four months of FY15 in July 2014. Inflows into the category are cyclical in nature as companies, banks and financial institutions withdraw money in the quarter for paying advance tax. On YoY basis, its assets increased by 51.1%. Liquid and money market schemes have seen net inflows of Rs 30595 crore in FY15 till September 2014, which was higher than net inflows of Rs 20950 crore in the corresponding period of previous year .  The weightage of liquid funds, of the total assets of the industry stood at 19% in September 2014, lower from 24% as in August 2014, but higher from 16% in September 2013. Income Funds  AUM of Income Funds decreased by 1.4% (by Rs 6619 crore) to Rs 4.54 lakh crore. Moreover, this category witnessed net outflow of Rs 10567 crore. Closed-ended income funds collected Rs 3139 crore in September. Out of the 45 new fund offers from mutual funds during the month, close ended income schemes accounted for 33 new fund launches.  Open ended income funds have seen net outflows of Rs 6150 crore, and there was net outflows of Rs 4288 crore in close ended income funds and Rs 129 crore net outflows were recorded in interval income funds.  Net outflows from income funds totaled to Rs 31867 crore in FY15 till September 2014, compared with net inflow of Rs 23012 crore in FY14 till September 2013. The weightage of income funds, of the total assets of the industry stood at 47% in September 2014, which is higher from 46% in August 2014 and lower from 57% in September 2013.    Gold ETF AUM of Gold ETF decreased by 5% (by Rs 384 crore) to Rs 7277 crore in September 2014 after falling by 1.4% in August 2014. On YoY basis, assets of this category decreased by 30.1%. The category witnessed outflows for the eighth consecutive month to a tune of Rs 47 crore, the second lowest since September 2013.  Net outflows from Gold ETF totaled to Rs 978 crore in FY15 till September 2014, nearly same as net outflows of Rs 978 crore in the corresponding period of previous year.  Gilt Funds AUM of Gilt Funds increased by 3.1% (by Rs 169 crore) to Rs 5619 crore in September and the category reported net inflow of Rs 132 crore after recording net inflow in the month of September 2014.  Meanwhile, the AUM declined by 23.9% on YoY basis. Net outflows from gilt funds totaled to Rs 869 crore in FY15 till September 2014, compared with net outflows of Rs 386 crore in the corresponding period of previous year.  Balanced Funds Assets of balanced funds increased by 5.7% (by Rs 984 crore) in September to Rs 18277 crore when compared on sequential basis, and increased by Rs 3059 crore or by 20.9% when compared with the same period of the previous year. Moreover, this category had witnessed net inflow of Rs 732 crore in September. Net inflows in this category totaled to Rs 1522 crore in FY15 till September 2014, which is higher than net outflows of Rs 782 crore in FY14 till September 2013. Fund of Funds Investing Overseas The total AUM of Fund of Funds Investing Overseas decreased by Rs 212 crore or by 6.7% on sequential basis and increased by Rs 598 crore or by 25.2% when compared with same period of the previous year.  Net inflows in this category totaled to Rs 297 crore in FY15 till September 2014, which is higher than net inflows of Rs 238 crore in FY14 till September 2013. Other ETFs Other Exchange Traded Funds (ETFs) has witnessed net outflow of Rs 439 crore in September as against net inflow of Rs 51 crore in August 2014. Net outflow from this category totaled to Rs 507 crore in FY15 till September 2014, compared with net outflows of Rs 947 crore in corresponding period of FY14. The total AUM of Other ETFs decreased by Rs 502 crore or by 9.6% to Rs 4737 crore on sequential basis, and increased by Rs 3345 crore when compared with same month of the previous year. Category Assets Under Management (AUM) * % Change Sep-14 Aug-14 Change Income 454495 461114 -6619 -1.4 Infrastructure Debt Funds 1120 1110 10 0.9 Equity 247585 234821 12764 5.4 Balanced 18277 17293 984 5.7 Liquid 184525 245035 -60510 -24.7 Gilt 5619 5450 169 3.1 ELSS - Equity 32812 31921 891 2.8 Gold ETF 7277 7661 -384 -5.0 OTHER ETFs 4737 5239 -502 -9.6 Fund Of Funds Investing Overseas 2968 3180 -212 -6.7 TOTAL 959415 1012824 -53409 -5.3 *Rs. Crore Category Assets Under Management (AUM) * % Change Sep-14 Sep-13 Change Income 454495 424596 29899 7.0 Infrastructure Debt Funds 1120 Equity 247585 140637 106948 76.0 Balanced 18277 15218 3059 20.1 Liquid 184525 122142 62383 51.1 Gilt 5619 7386 -1767 -23.9 ELSS - Equity 32812 21813 10999 50.4 Gold ETF 7277 10415 -3138 -30.1 OTHER ETFs 4737 1392 3345 240.3 Fund Of Funds Investing Overseas 2968 2370 598 25.2 TOTAL 959415 745969 213446 28.6 *Rs. Crore Category Net Flows (Rs. Cr) Sep-14 Aug-14 FY2015 FY 2014 Income -10567 -12696 -31867 23012 Infrastructure Debt Funds 0 0 188 0 Equity 7789 5217 33790 -5354 Balanced 732 448 1522 -782 Liquid / Money Market -67318 -5864 30595 20950 Gilt 132 -209 -869 -386 ELSS - EQUITY 157 147 -620 -1001 Gold ETF -47 -112 -978 -1226 Other ETFs -439 51 -947 -109 Fund of Funds Investing Overseas -103 -17 -297 238 Total -69664 -13035 30517 35342

Data as per available records made available to our research team.