Distribution channel including associate distributors and MFDs are far ahead of direct investment routes when it comes to NFOs, shows an analysis of data from three recent fund launches from top AMCs.
In two of the NFOs — ICICI Prudential flexicap fund and SBI Balanced Advantage Fund — the distributors brought in close to 95% of the total collection. In case of Kotak MF's Global Innovation NFO, the share of distributors was 85%.
Of the total Rs.14,676 crore mobilised by SBI MF through the NFO, Rs.13,970 crore came through its associate distributor SBI Bank and MFDs. Direct channels contributed Rs.706 crore. In case of ICICI Prudential MF's Flexicap NFO, investors poured in Rs.9,774 crore into the regular plan compared to Rs 627 crore in the direct plan.
Similarly for Kotak MF, 85% of the inflow came from the distributor channel.
SBI BAF NFO
|
B30 |
T30 |
TOTAL |
MOBILISATION |
|||||||||
|
Regular |
Direct |
Regular |
Direct |
Regular |
Direct |
|
||||||
|
5,779 |
139 |
8,190 |
567 |
13,970 |
706 |
14,676 |
||||||
|
39.38 |
0.95 |
55.81 |
3.86 |
95.19 |
4.81 |
|||||||
ICICI Prudential flexicap NFO
|
B30 |
T30 |
TOTAL |
MOBILISATION |
|||
|
Regular |
Direct |
Regular |
Direct |
Regular |
Direct |
|
|
2,302 |
169 |
7,472 |
458 |
9,774 |
627 |
10,401* |
|
22% |
2% |
72% |
4% |
93.97% |
6.03% |
|
Kotak Global Innovation FoF
|
B30 |
T30 |
TOTAL |
MOBILISATION |
|||
|
Regular |
Direct |
Regular |
Direct |
Regular |
Direct |
|
|
286 |
23.86 |
1,112 |
225.5 |
1,398 |
249.36 |
1,648* |
|
17.38 |
1.45 |
67.48 |
13.69 |
84.86 |
15.13 |
|
*We have used data from monthly AUM figures disclosed by ICICI MF and Kotak MF in August, which includes some contributions made by investors post the NFO period. So, there is a bit of a deviation from actual numbers | All numbers are in Rs crore
MFDs said they found it easier to sell some of the recent NFOs due to the ongoing rally in the equity market and a sustained promotion by the AMCs. "Some of the recent NFOs were easier to sell as investors were more open to invest amid the ongoing rally in equity markets," said MFD Babu Krishnamoorthy.
"Clients are keen to invest in NFOs. Many investors have invested in with long term horizon like 10 years and 15 years," said a Mumbai-based MFD.
Majority of the contribution in regular plans came from non-associate distributors for ICICI Prudential MF. They brought in Rs 6,200 crore as against Rs 3,400 collected by its associate distributor. In case of Kotak MF, it was the opposite. Non associate distributors brought in Rs 476 crore as against Rs 920 collected by the associate distributor. SBI MF is yet to release this data.
|
Associate Distributors |
Non-associate Distributors |
|||
|
Fund |
T30 |
B30 |
T30 |
B30 |
|
Kotak Innovation FoF |
742.94 |
178.4 |
368.8 |
108 |
|
ICICI Pru Flexicap |
2761 |
728.58 |
4710.62 |
1573.46 |
*All numbers are in Rs crore
