Industry Profile

The Indian mutual fund industry has shown relatively slow growth in the period FY 10-13
growing at a CAGR of approximately 3.2 per cent. Average (AUM) stood at INR 8,140 billion
as of September 2013. However, AUM increased to INR 8,800 billion as of December 2013.
Lacklustre stock market performance, rising inflation and anticipation of a rise in interest rates
has led to a tapering of growth in the Indian mutual fund industry in the recent years.
In comparison to global markets, Indias AUM penetration as a per cent of GDP is between 56 per cent while it is around 77 per cent for the U.S., 40 per cent for Brazil and 31 per cent for
South Africa. Despite the relatively low penetration of mutual funds in India, the market is
highly concentrated. Though, there are 44 AMCs operating in the sector, approximately 80 per
cent of the AUM is concentrated with 8 of the leading players in the market. There have been
recent instances of consolidation in the market and market concentration is expected to remain
in the near-term.
The equity-debt mix is determined largely by the performance of the capital markets and
interest rate cycles. AUMs in debt and liquid money market funds have seen an increase in
FY14 due to the anticipation of RBI rate cuts and desire for investors to seek a fixed return.
Debt oriented products (investing in debt instruments with maturity > 3 months) have gained
most traction in terms of absolute net new money, with an absolute increase in AUM of INR
1,000 billion indicating a clear shift in investor interest from equity in recent times3 . Gold
ETFs have grown at an extremely fast pace over the last few years albeit from a much smaller
base (CAGR of over 90 per cent from FY10- FY13). These have gained popularity due to the
popularity of gold as an investment for Indians as well as due to the lowering of administrative
charges and distribution expenses which makes it easier for the product to be distributed as
well.
Corporate investments constitute around 49 per cent of AUM with a focus on debt/money
market funds for the purpose of short term returns and liquidity management. Retail share of
AUM is 20 per cent and is expected to rise driven by increased investor awareness, product
penetration and greater distribution reach. High Net worth Individual (HNIs) have emerged as
the fastest growing investor segment growing at a rate of 20 per cent over the period of FY10FY13 with a preference for debt oriented funds. However, AUM growth largely remains
restricted to the top 5 cities in India viz. Mumbai, Delhi, Bangalore, Chennai and Kolkata

(contributing 74 per cent of AUM as of September 2013). The top 35 cities continue to
contribute around 90-92 per cent of the industry AUM.

Company Profile
IDBI Mutual Fund:
Legal Address:
Idbi Tower , Wtc Complex,Cuf Fe Parade , Colaba, Maharashtra , India, Mumbai
Postal Code: 400005
Tel: +91-022-66442813
Fax: +91-022-66442801
Email: manesh.jiandani@idbi.co.in
Website: http://www.idbimutual.co.in
Full name: Idbi Asset Management Limited
Status: Non-Listed
Legal Form: Limited Liability Company
Operational Status: Operational
Incorporation Date: 2010
Corporate Profile:
IAML was incorporated on January 25, 2010 and is a subsidiary of IDBI Bank Ltd. IAML is
the investment manager of schemes launched by IDBI Mutual Fund (The Fund). The Fund
offers a bouquet of products in equity, debt and gold to suit the diverse and varying needs and
risk profile of investors.
Schemes:
1. Equity- IDBI diversified Equity Fund
2. Debt- IDBI Debt opportunities fund
3. Gold- IDBI Gold fund, IDBI Gold ETF

ICICI Prudential
Corporate Profile:
ICICI Prudential Asset Management Company Ltd. is a leading management company
(AMC) in the country focused on bridging the gap between savings & investments and
creating long term wealth for investors through a range of simple and relevant investment
solutions.

The AMC is a joint venture between ICICI Bank, a well-known and trusted name in financial
services in India and Prudential Plc, one of UKs largest players in the financial services
sectors. Throughout these years of the joint venture, the company has forged a position of
pre-eminence in the Indian Mutual Fund industry.

The AMC manages significant Assets under Management (AUM) in the mutual fund
segment. The AMC also caters to Portfolio Management Services for investors, spread across
the country, along with International Advisory Mandates for clients across international
markets in asset classes like Debt, Equity and Real Estate.

The AMC has witnessed substantial growth in scale; from 2 locations and 6 employees at the
inception of the joint venture in 1998, to a current strength of more than 1100 employees with
a reach across around 120 locations reaching out to an investor base of more than 3 million
investors. The companys growth momentum has been exponential and it has always focused
on increasing accessibility for its investors.

Driven by an entirely investor centric approach, the organization today is a suitable mix of
investment expertise, resource bandwidth and process orientation. The AMC endeavours to
simplify its investors journey to meet their financial goals, and give a good investor
experience through innovation, consistency and sustained risk adjusted performance.
Products:
Equity Funds
Equity schemes endeavour to provide potential for high growth and returns with a moderate
to high risk by investing in shares. Such schemes are either actively or passively (replicate
indices) managed, and are best suited for investors with a long term investment horizon.

Balanced / Hybrid Funds

Hybrid Schemes or balanced schemes bridge the gap between equity and debt schemes. This
category is characterized by a portfolio that is made up of a mix of equity stocks and bonds
and will suit investors looking for debt plus returns with higher levels of risk than fixed
income schemes.
Debt Funds
Debt Funds primarily invests in bonds and other debt instruments, and will suit investors who
want to optimize current income assuming low to moderate levels of risk.
Fund Of Funds
A Fund of Funds is a mutual fund scheme that invests in other mutual funds, and is designed
to suit the varying needs of different investor categories based on their risk profiles, return
expectations and investment goals. It provides investors an opportunity to take advantage of
the benefits of diversification by investing in a variety of fund categories.
Exchange Traded Funds
Exchange Traded Funds (ETFs) are instruments that track an index, a commodity or a basket
of assets as closely as possible, but trade like shares on an exchange. They are backed by
physical holdings of the commodity, and invest in stocks of companies, precious metals or
currencies. ETFs give you the flexibility to buy and sell units throughout the day, on an
exchange.