CRISIL Mutual Fund Ranking

For the quarter ended December 2019


Industry highlights


The mutual fund industry’s average assets under management (AAUM) grew 14% to Rs 26.87 trillion in 2019 – recording growth for nine years on the trot. In the last quarter (October - December) of 2019, the rise was 4.3% primarily owing to jump in assets of equity mutual funds and index funds/ETFs. 


Equity schemes’ average assets jumped 7.5%, or by Rs 522 billion, to Rs 7.48 trillion in the December quarter, buoyed by mark-to-market (MTM) gains. The increase on year was a sharper 20%, or by Rs 1.26 trillion. The category’s assets were Rs 7.07 trillion in the June quarter and had fallen to Rs 6.96 trillion in the September quarter. The benchmark equity index Nifty 50 surged 6% during the quarter compared with a 2.7% fall in the September quarter. Investors continued to show interest in the category as was reflected in net inflow of Rs 114 billion it received during the quarter. However, the figure was half the September-quarter inflow of Rs 236 billion. Within the equity category, AAUM of large-cap, multi-cap, equity-linked savings scheme (ELSS) and mid-cap funds witnessed the biggest rise in absolute terms. On a consolidated basis, their AUM (64% of total equity AAUM) jumped Rs 354 billion during the quarter. 


The previous quarter’s upward momentum in debt funds, which account for 45% of the industry’s AAUM, continued. Their assets were up 2.13%, or by Rs 250 billion, to Rs 11.97 trillion in the December quarter. On year, the growth was 10.5% or by Rs 1.14 trillion. The rise can be attributed to MTM gains amid a pullback in yields after the Reserve Bank of India (RBI) cut interest rate five times during the year. Within the category, on both percentage and absolute basis, assets of overnight and banking and PSU funds grew the most - around 98% or by Rs 184 billion, and 30% or by Rs 145 billion, respectively. On the other hand, assets of liquid, credit risk and medium duration funds fell the most in absolute terms. These categories constitute 50% of total debt assets. On a consolidated basis, their AAUM fell Rs 400 billion. 


Hybrid funds, which invest in more than one asset classes, saw an almost 4% rise in average assets. The category’s average asset base expanded to Rs 3.56 trillion in the quarter. On year, the growth was 4.4% or by Rs 151 billion. Arbitrage funds mainly boosted the category with their AAUM surging nearly 20% to Rs 811 billion (23% of hybrid category assets). Dynamic asset allocation or balanced advantage funds also saw a 3.3% rise in their assets to Rs 915 billion. Aggressive hybrid funds’ AUM, which constitutes 39% of the total hybrid assets, saw their assets fall Rs 16 billion to Rs 1.37 trillion. In percentage terms, assets of equity savings funds (4% of hybrid category assets) retreated the most – down 8%, or by Rs 13 billion, to Rs 154 billion.