India’s Leading BFSI and FinTech Companies 2021

37 Sector-Wise Resource Mobilization Private sector mutual funds continued to hold dominance in the mutual funds industry in fiscal 2020 as well. In terms of gross resource mobilization, private sector mutual funds contributed to a massive 79.7%. On a year-on-year comparison, however, gross resource mobilization from both private and public sectors witnessed a decline. Gross resource mobilization by the private sector mutual funds decreased by 23.7% to ` 149.9 trillion in FY20 from ` 196.5 trillion a year ago. Likewise, gross resource mobilization by public sector mutual funds slipped by 19.4% from ` 47.4 trillion in FY19 to ` 38.2 trillion in FY20. In terms of net resource mobilization, the share of private sector mutual funds dropped by 60.9% to ` 240.6 bn in FY20 from ` 615.1 bn in FY19, while that of public sector mutual funds increased by 31.2% to ` 632.4 bn from ` 481.9 bn during the same period. Net resource mobilization stood at net inflows of ` 873 bn during FY20 as against net inflows of ` 1,097 bn in FY19. Open-ended schemes witnessed net inflows of ` 1,250 bn while there was net outflow of ` 360 bn in closed-ended schemes. Among the open-end schemes, equity/growth-oriented schemes received the highest net inflows of ` 837.9 bn followed by ETFs and Solution-Oriented Schemes at ` 673.1 bn and ` 24.5 bn, respectively. On the flipside, though open-ended hybrid as well as Income/Debt oriented schemes registered net outflows of ` 237.7 bn and ` 47.8 bn, respectively. Among the Close-ended schemes, income/debt-oriented schemes logged the most redemptions with net outflows of ` 338.1 bn, while Equity/Growth-oriented schemes and interval schemes registered net outflows of ` 21.9 bn and ` 17.1 bn, respectively. Growth in Assets The share of individual investors in the total Assets under management (AUM) of the mutual funds industry declined from 54% at the end of FY19 to 50.1% at the end of FY20. The share of corporates, however, increased from 41.9% to 46.6% during the same period. As of March 2020, about 96.9% of the total folios were contributed by individuals, whereas corporates contributed 1.2%with NRIs/overseas corporate bodies (OCBs) holding 1.9% share in the total number of folios. 41.9 0.6 3.6 54 46.6 0.2 3.2 50.1 Corporates/Institutions/Ot hers FPIs NRIs/OCBs Indiv iduals Sha re in AUM (%) FY19 FY20 The value of AUM held by individuals declined from ` 2,250.5 bn in FY19 to ` 2,110.3 bn in FY20. The value of institutional assets increased from ` 2,212.4 bn in FY19 to ` 2,455.7 bn in FY20. Resource Mobilization of Mutual Funds – FY20 and FY19 Private Sector MFs Public Sector MFs Total Year Mobilisation of Funds ( ` bn) FY19 196,529.9 47,413.7 243,943.6 FY20 149,899.9 38,234.7 188,134.6 Year Redemption/Repurchase ( ` bn) FY19 195,914.8 46,931.8 242,846.6 FY20 149,659.3 37,602.3 187,261.6 Year Net Inflow/Outflow of Funds ( ` bn) FY19 615.1 481.9 1,097.0 FY20 240.6 632.4 873.0 Source: SEBI Annual Report 2019-20 Dun & Bradstreet