The AUM of direct plans increased by Rs. 44,083 crore to reach Rs 3.39 lakh crore in April-June 2014.
Direct plans are steadily getting popular among institutional investors.
Data provided by CRISIL shows that investors poured in Rs. 44,083 crore in direct plans during April-June quarter. Direct plans AUM now constitutes 34% or Rs. 3.39 lakh crore of the total Rs. 9.86 lakh crore managed by the industry.
“The share of direct plans increased to 34% of the industry’s AUM (excluding fund of funds) in June quarter vis-à-vis 33% in the previous quarter. In terms of growth, the average AUM of direct plans rose around 15% (Rs. 44,083 crore) to Rs 3.39 lakh crore from Rs 2.95 lakh crore in the March quarter,” stated CRISIL.
Direct plan AUM
|
Category |
April-June 2014 |
Jan-Mar 2014 |
Change |
|
Equity |
10,452 |
8,119 |
2,333 |
|
Liquid |
158,532 |
137,021 |
21,511 |
|
Ultra short term |
38,496 |
30,845 |
7,651 |
|
Short term |
17,683 |
16,473 |
1,210 |
|
Long term debt |
13,235 |
15,417 |
(2,182) |
|
Gilt |
1,683 |
1,856 |
(173) |
|
FMP |
92,960 |
79,914 |
13,046 |
|
Other debt-oriented funds |
6,273 |
5,586 |
687 |
|
Total |
339,314 |
295,231 |
44,083 |
|
Source : CRISIL(Rs. cr) |
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Direct plans were introduced in January, 2012.
Equity
The share of direct AUM in equity funds increased by 29% or Rs. 2,333 crore to Rs. 10,452 crore in June quarter from Rs. 8,119 crore in March quarter. Equity funds still constitute 4% of the total AUM of equity funds. A majority of investors in equity funds are retail investors. Industry experts said that a large portion of retail investors will continue to invest through distributors as they need handholding and advice.
Liquid
funds and FMPs
Liquid funds had the highest share of direct
AUM at Rs. 1.58 lakh crore, followed closely by FMPs at Rs. 92,960 crore. These two
category received the maximum inflows in their direct plans. The appetite for
FMPs increased due to the prevailing high interest rate. Yields on the one-year
commercial paper (CP) and certificate of deposit (CD) traded at 9.26% and
8.91%, respectively, at the end of June 2014, up significantly from 8.76% and
8.15% a year ago, said CRISIL. The total assets of FMPs rose to a record high
of Rs. 1.73 lakh crore during April-June 2014.
Liquid funds AUM in direct plans increased by Rs. 21,511 crore while FMPs AUM increased by Rs. 13,046 crore. Ultra short term funds also received the third largest inflows in direct plans at Rs. 7,651 crore.
Long term debt funds
Uncertainty of interest rate movement led investors to pull out of gilt and long term debt funds. Long term debt and gilt funds’ average AUM fell by a record Rs 1.6 lakh crore and Rs. 954 crore to end the quarter at Rs 78,522 crore and Rs 5913 crore respectively. Consequently, direct plans of long term debt funds and gilt funds also saw outflows to the tune of Rs. 2,182 crore and Rs. 173 crore respectively.
|
Category |
Direct AUM June |
Total AUM June |
% of direct AUM to total AUM |
|
Equity |
10,452 |
235,649 |
4% |
|
Liquid |
158,532 |
269,372 |
59% |
|
Ultra short term |
38,496 |
97,431 |
40% |
|
Short term |
17,683 |
75,115 |
24% |
|
Long term debt |
13,235 |
78,522 |
17% |
|
Gilt |
1,683 |
5,913 |
28% |
|
FMP |
92,960 |
173,682 |
54% |
|
Other debt-oriented funds |
6,273 |
37,296 |
17% |
|
Total |
339,314 |
972,980 |
35% |
|
Source : CRISIL (in Rs. cr) |
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