The main gamers of the mutual fund trade have yielded floor within the fairness section, with the share of the highest seven-eight AMCs (asset administration corporations) witnessing a decline, analysts at Nomura wrote. The market share of those AMCs within the pure fairness class has declined to 46%, the bottom within the earlier four-five years, they stated.
Top AMCs (besides SBI MF) misplaced market share of 310 foundation factors year-on-year in May 2022 within the pure fairness section. “We note that month-on-month trends are pointing to a market-share loss,” Nomura analysts wrote.
HDFC AMC misplaced market share of round 100 bps YoY in May regardless of strong performances of all schemes, whereas Axis AMC has misplaced 70 bps, down 20 bps YoY. ICICI Prudential AMC continues to carry up effectively, sustaining its market share in many of the segments. Nippon witnessed a 90 bps Y-o-Y decline, giving up the recoveries in April when it had rebounded to the December 2021 ranges.
SBI MF has bucked the pattern, sustaining market share positive factors, which elevated 40 bps in FY22. “That said, M-o-M market share trends, even for SBI MF, point to a market-share loss, and we believe they warrant monitoring,” analysts wrote.
The gross inflows into equities at Rs 28,300 crore have fallen round 40% since March 2022. Net fairness flows (together with ELSS) have been fairly good at Rs 15,600 crore, with flows from systematic funding plans (SIPs) holding up effectively at Rs 12,300 crore (flat month-on-month) and continued optimistic lump-sum flows regardless of uncertainties within the inventory markets. Smaller redemptions, down 34% from the March ranges, and a steady SIP e book have supported internet inflows into equities.