Overall trends have remained positive for the asset management industry in FY22 so far. Factors such as positive flows in equity, passive and hybrid funds with increase in systematic investment (SIP) flows as well as folios are likely to support earnings of asset management companies (AMCs), according to ICICI Securities.
New fund offerings (NFOs) have also been healthy especially in multi-cap, sector/ thematic and fund of funds segments, ICICI Securities said in a note.
Based on ending asset under management (AUM) HDFC AMC’s overall market share as on May dipped marginally to 12.5% compared to 12.8% in March. Similarly UTI AMC’s market share has declined from 5.8% to 5.6%.
Nippon Life India Asset Management Limited (NAM’s) overall market share improved from 7.2% as on March to 7.3% as on May. In terms of equity market share, HDFC AMC’s market share dipped 28 basis points (bps) to 12.8% while NAM and UTI AMC market share remained stable at 6.9% and 4.7%, respectively.
In terms of debt market share, NAM’s market share improved from 6.7% in March to 7.2%, while HDFC AMC’s market share remained stable at 14.2% and UTI AMC’s market share declined from 4% to 3.8%. CAMS market share stood at 69% in May.
“Between January and May, mutual funds have been able to garner ₹18300 crore through NFOs of which equity, debt, fund of funds and index fund schemes contributed ₹8100 crore, ₹3900 crore, ₹3100 crore and ₹900 crore, respectively,” said ICICI Securities.
Quoting a media report, the brokerage firm said there are ongoing deliberations to make national pension scheme (NPS) scheme more investor-friendly. These include changes in tax regime, launching systematic withdrawal plans and indexing annuities to inflation to offer higher returns. There have also been suggestions to increase annual tax benefit to Rs100,000 versus current limit of ₹50,000 per annum.
PFRDA has allowed NPS subscribers with savings up to ₹5,00,000 to take the entire amount at retirement without mandating any investment in annuities. Earlier this facility (without annuity rider) was available only for withdrawal of NPS corpus of up to ₹2,00,000. PFRDA has also revised the premature withdrawal limit on a lump sum basis from Rs1,00,000 to Rs2,50,000. Maximum entry age to avail the benefit has also been risen to 70yrs against 65yrs earlier. “Positive changes in NPS scheme can benefit UTI the most ( ₹1.76 trillion AUM),” ICICI Securities said.
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