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Equity flows moderate; SIP flows remain robust

Equity MF schemes (ex-arbitrage) inflows stood at INR 142bn in Oct’22 (vs INR 179bn in Sep’22) partly aided by INR 48bn flows from NFOs during the month (vs INR 70bn in Sep’22). In the last 4 months equity flows (ex-arb) have moderated to a monthly average of INR 162bn (vs. avg. of INR 295bn in 1HCY22). Arbitrage funds saw net outflows of INR 25bn (vs net outflows of INR 40bn in Sep’22). Including net outflows from arbitrage funds, net inflows in equity schemes were at INR 117bn. Further, SIP inflows remain strong at INR 130bn (+24% YoY, +0.5% MoM). SIP AUM stood at INR 6.6trn (+20% YoY, +5% MoM). Net new SIPs registered (new SIPs registered minus SIPs discontinued) stood at 0.95mn in Oct’22 (vs 1.22mn in Sep’22). Debt MF (ex-liquid) witnessed net outflows of INR 124bn (vs net outflows of INR 286bn in Sep’22) and liquid MF schemes witnessed net inflows of INR 96bn (vs net outflows of INR 381bn in Sep’22). Total industry MF AUM stood at INR 39.5trn (+6% YoY, +3% MoM) while equity MF AUM stood at INR 21.6trn (+18% YoY, +4% MoM). As of Oct’22, equity MF schemes contributed 51.6% (+380bps YoY) of total industry MF AUM while debt and liquid schemes contributed 19.5% (-670bps YoY) and 16.1% (+90bps YoY), respectively. For the AMCs under our coverage, equity AUM market share for HDFC AMC and NAM witnessed a sequential improvement of 2bps/1bps MoM to 11.6% (-8bps YoY) and 6.3% (-29bps YoY) respectively, while UTI’s market share stood at 4.7% (-5bps MoM, - 19bps YoY).

Key highlights are tabulated below:

- Equity MFs (incl. ELSS + Arbitrage + Balanced) Inflow: INR 117bn (vs. INR 139bn inflow in Sep’22).

- Net flows in equity schemes include INR 25bn net outflow from arbitrage schemes. Excluding arbitrage flows, equity schemes witnessed net inflows of INR 142bn (vs. INR 179bn net inflow in Sep’22 on a like-to-like basis).

- Large and midcap, Mid cap, Large cap, Multi cap/Flexicap and Small cap witnessed inflows of INR 11.9bn, INR 13.9bn, INR 1.7bn, INR 13.5bn and INR 15.8bn respectively.

- Debt MFs (ex-liquid schemes) outflow: INR 124bn (vs. INR 286bn outflow in Sep’22).

- Liquid MFs inflow: INR 96bn (vs. INR 381bn outflow in Sep’22).

* MF AUM (as of Oct’22):

- Equity MFs (incl. ELSS + Arbitrage + Balanced) AUM: INR 21.6trn (+18% YoY, +4% MoM).

- Equity MF AUM includes INR 0.76trn in arbitrage schemes.

- Debt MFs (ex-liquid schemes) AUM: INR 6.5trn (-31% YoY, -1% MoM).

- Liquid MFs AUM: INR 6.1trn (+14% YoY, +2% MoM). - Overall MFs AUM: INR 39.5trn (+6% YoY, +3% MoM).

* SIP inflows (Oct’22):

- SIP inflows in Oct’22 stood at INR 130.4bn (+24% YoY, +0.5% MoM) with SIP AUM at INR 6.6trn (+20% YoY, +5% MoM).

- New SIPs registered stood at c.1.97mn for Oct’22 (c.2.37mn for Sep’22) while SIPs deregistered stood at c.1.02mn for Oct’22 (c.1.15mn for Sep’22).

* Industry MF AUM mix (as of Oct’22):

- Equity MF schemes (incl. ELSS + Arbitrage + Balanced) contributed 51.6% to industry monthly average AUM in Oct’22, compared with 47.8% in Oct’21 (+380 bps).

- Individuals contributed 57.5% to Industry monthly average AUM in Oct’22, compared with 54.9% in Oct’21 (+260 bps).

* Market shares based on Oct’22 monthly average AUM:

- Equity MF schemes: Among top AMCs, SBI AMC and ICICI Pru AMC gained 133 bps and 2 bps of market share respectively since Oct’21, while Birla SL AMC, NAM, UTI AMC and HDFC AMC have lost 88 bps, 29 bps, 19 bps and 8 bps of market share respectively.

- Debt MF schemes: Among top AMCs, SBI AMC, ICICI Pru AMC and UTI AMC have gained 95 bps, 35 bps and 4 bps of market share respectively since Oct’21, while HDFC AMC, NAM and Birla SL AMC have lost 129 bps, 90 bps and 2 bps of market share respectively.

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