The share of direct plans in mutual fund is steadily rising. From 38% in March 2016, the share of direct plans in the total AUM of top 10 mutual funds rose to 54% in June 2022.
Despite the rise of direct investing, regular plans still dominate the AUM of several top players. UTI MF, Axis MF and DSP MF have over 60% of total assets in regular schemes.
"Among peers, UTI AMC has the highest proportion of AUM derived from regular plans (69.39%) followed by DSP AMC (63.67%) and Axis AMC (59.75%) as of June 2021. Higher proportion of regular plans indicate strong tie-ups with distributors and a larger retail presence," ABSL MF's IPO filing noted.
Interestingly, UTI MF is the only player whose regular plan share has gone up over the years. In March 2016, share of regular plans in its AUM was 52% compared to 69% in June 2021.
Change in share of direct and regular plans in total AUM of top 10 MFs:
|
Fund house |
Mar-16 |
Jun-21 |
||
|
Direct (%) |
Regular (%) |
Direct (%) |
Regular (%) |
|
|
SBI |
44 |
56 |
59 |
41 |
|
HDFC |
30 |
70 |
47 |
53 |
|
ICICI Pru |
34 |
66 |
45 |
55 |
|
ABSL |
39 |
61 |
50 |
50 |
|
Kotak Mahindra |
41 |
59 |
52 |
48 |
|
Nippon India |
42 |
58 |
55 |
45 |
|
Axis |
27 |
73 |
40 |
60 |
|
UTI |
48 |
52 |
31 |
69 |
|
IDFC |
43 |
57 |
54 |
46 |
|
DSP |
30 |
70 |
36 |
64 |
|
Industry |
38 |
62 |
46 |
54 |
*Source: IPO prospectus of ABSL MF *Percentages calculated on basis of average AUM of respective quarters
A separate analysis of equity and debt data shows that regular plans have a better hold on equity schemes compared to debt schemes. The share of regular plans in equity schemes is in the range of 73-82% as against 27-67% in case of debt schemes.
Share of regular and direct plans as on June 2021:
|
Fund house |
Equity |
Debt |
||
|
Direct (%) |
Regular (%) |
Direct (%) |
Regular (%) |
|
|
SBI |
19 |
81 |
49 |
51 |
|
HDFC |
22 |
78 |
63 |
37 |
|
ICICI Pru |
22 |
78 |
52 |
48 |
|
ABSL |
20 |
80 |
66 |
34 |
|
Kotak Mahindra |
27 |
73 |
58 |
42 |
|
Nippon India |
18 |
82 |
72 |
28 |
|
Axis |
25 |
75 |
54 |
46 |
|
UTI |
18 |
82 |
32 |
68 |
|
IDFC |
23 |
77 |
61 |
39 |
|
DSP |
18 |
82 |
60 |
40 |
*Source: IPO prospectus of ABSL MF *Percentages calculated on basis of average AUM of respective quarters
Share of associate distributors
SBI MF has the highest dependence on its associate distributor and it has been rising over the years. In March 2016, its associate distributor had 23% share in total AUM. The figure rose to 49% by June 2021.
Kotak Mahindra and Axis MFs registered a decline in share of associate distributors during the same period. Only 8% of Kotak MFs total AUM belongs to its associate distributor now compared to 18% in March 2016. For Axis MF, the figure has reduced to 23% from 52%.
|
Mar-16 (%) |
Jun-21 (%) |
|
|
SBI |
23 |
49 |
|
HDFC |
10 |
10 |
|
ICICI Pru |
10 |
15 |
|
ABSL |
7 |
4 |
|
Kotak Mahindra |
18 |
8 |
|
Axis |
52 |
23 |
|
UTI |
1 |
2 |
*Source: IPO prospectus of ABSL MF *Percentages calculated on basis of average AUM of respective quarters
