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UTI mutual fund is the largest asset management company in India in terms of Total AUM and the seventh largest asset management company in India in terms of mutual fund QAAUM as of September 30, 2019, according to CRISIL.
Their total QAAUM for domestic mutual funds (“Domestic Mutual Fund QAAUM”) was ₹1,542.3 billion, while Other AUM was ₹6,254.7 billion. They have 11 million live folios as of September 30, 2019.
It manages the domestic mutual funds of UTI Mutual Fund, provide portfolio management services (“PMS”) to institutional clients and high net worth individuals (“HNIs”), and manages retirement funds, offshore funds and alternative investment funds.
UTI and its predecessor (Unit Trust of India) have been active in the asset management industry for more than 55 years, having established the first mutual fund in India.
UTI is a professionally managed company led by its Board of Directors and a dedicated and experienced management team. For purposes of the SEBI Mutual Fund Regulations, four sponsors are the State Bank of India (“SBI”), Life Insurance Corporation of India (“LIC”), Punjab National Bank (“PNB”) and Bank of Baroda (“BOB”) (collectively, the “Sponsors”), each of which has the Government of India as a majority shareholder. T. Rowe Price Group, Inc., a global asset management company, is other major shareholder (through its subsidiary T. Rowe Price International Ltd. (“TRP”)).
UTI mutual fund manages over 178 domestic mutual funds scheme, including equity, hybrid, income, liquidity and monetary market funds.
Not only it manages mutual funds but it also manages retirement funds (in our retirement solutions business, which manages the National Pension System (“NPS”) funds), offshore funds (including the Shinsei UTI India Fund, a co-branded fund with Shinsei Bank of Japan) and alternative investment funds.


Well-positioned to capitalise on favourable industrial dynamics

According to CRISIL, the Indian mutual fund industry is expected to continue to grow due to supportive industry dynamics and long-term structural drivers, including the increasing financialisation of household savings, increasing market penetration of mutual fund products, particularly in B30 cities, and favourable population and urbanisation trends. And in this period UTI mutual funds had highest proportion of monthly average AUM.

Independent asset manager with unique brand recognition and diversified portfolio

UTI mutual fund has a strong base of investments since 55 years and is known for diversified portfolio management.
It offers a diverse portfolio of domestic funds, including equity, hybrid, income, liquid and money market funds, as well as portfolio management services, retirement solutions, and offshore and alternative investment funds.

Stable client base with wide distribution channels

UTI asset management company has a comprehensive multi-channel distribution network with both in-house capabilities and external distribution channels.
It has wide-spread distribution network in India which gives access to investors located in 697 districts.

Experienced management supported by strong governance structures

UTI is a professionally managed asset management company led by its Board of Directors and experienced senior management team. It is a 38 member team with total experience of 49 years in managing domestic mutual funds.

Enriched profitability driven by size and product mix

UTI’s client services are managed on an automated and integrated basis, which improves its cost structure; they are implementing a digital transformation program to 130 leverage technology to improve efficiency and optimise costs even further, including through the introduction of marketing automation and global investment management applications.


Drive superior investment performance

Striving for developing better front end platform for investors. This will help to launch new products and enable AUM growth.

Increase geographical reach

Plan to deepen presence in T30 cities. Strengthen relationship with institutional and PSU clients. Expand share of provident fund business.

Actively pursuing additional partnership oppurtunities

Exploring additional strategic partnerships with distributors including banks, aggregators and fintech platforms. Planning potential tie up with bank to expand geographical footprint.

Attracting and developing human capital

Planning to provide employee compensation that is merit based. Enriching employee share ownership for developing culture of ownership and aligning employees’ interest with their interests.


Set forth below is a list of shareholders holding 1% or more of the paid-up Equity Share capital of Company, as on December 13, 2019:

Name of Shareholder Number of Equity Shares on fully diluted basis Percentage of the Equity Share Capital (%) on a fully diluted basis 
TRP 32,964,686 26
SBI 23,125,000 18.24
LIC 23,125,000 18.24
BOB 23,123,000 18.24
PNB 23,125,000 18.24
Total 125,464,686 98.96


The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and the sale of up to 38,987,081 Equity Shares by the Selling Shareholders in the Offer.

Further, the listing of Equity Shares will enhance the Company’s brand name and provide liquidity to the existing Shareholders.

The Company expects that the proposed listing will also provide a public market for the Equity Shares in India. The Selling Shareholders will be entitled to the entire proceeds of the Offer after deducting the Offer expenses and relevant taxes thereon. The Company will not receive any proceeds from the Offer.


Household Savings

Gross Domestic Savings Rate

India has historically been, and is expected to continue to be, a high savings economy. High savings can be used to finance investments, which can further ease supply-side constraints in the economy and drive long-term economic growth.

Gross Domestic Savings Rate (%)

Note: Data for China, US States and world include data for 2017

While India’s gross domestic savings (“GDS”) rate has declined from 33.9% of GDP as of Fiscal 2013 to 30.5% as of Fiscal 2018. Household savings as a percentage of GDP remained more stable and have seen declines from 22.5% as of Fiscal 2013 to 17.2% as of Fiscal 2018. As of Fiscal 2018, the quantum of gross household financial savings was ₹18.7 trillion.

(₹ billion) Mar-13  Mar-14  Mar-15  Mar-16  Mar-17  Mar-18
GDS 33,692 36,082 40,200 42,829 46,484 52,160
Percentage of GDP 33.9 32.1 32.2 31.1 30.3 30.5
Household sector savings (net financial savings, savings in physical assets and in the form of gold and silver ornaments) 22,353 22,853 24,391 24,749 26,229 29,382
Percentage of GDP 22.5 20.3 19.6 18.0 17.1 17.2
Gross financial savings 10,640 11,908 12,572 14,962 14,384 18,696
Financial liabilities 3,304 3,587 3,768 3,854 4,686 7,406
Savings in physical assets 14,650 14,164 15,131 13,176 16,069 17,679
Savings in the form of gold and silver ornaments 367 368 456 465 463 413

Household Savings Growth

Going forward, with stable inflation, rising disposable income levels and ongoing robust GDP growth, CRISIL expects the growth in household savings of the past few years to continue.

Household Savings (₹ billion)

Share of Savings in Physical Assets

Over the past five years, consumer price index (“CPI”) inflation has continued to decline from a high of 9.4% as of Fiscal 2014 to 3.4% as of Fiscal 2019. In July 2019, CPI inflation slowed down to 3.15%, which was well below the RBI’s medium-term target of 4.00. CRISIL expects CPI inflation to average 3.8% as of Fiscal 2020, up from 3.4% as of Fiscal 2019 as food prices are continuously rising.

CPI Inflation (%)

CRISIL expects lower inflation to decrease the relative attractiveness of gold and real estate (Indian households’ favourite physical assets) as investment options.

Net Household Savings

Role of Mutual Funds

The share of mutual funds in overall household savings has increased steadily since Fiscal 2013 and stood at 1.3% as of Fiscal 2018. With the financial sector being particularly sensitive to improved economic conditions and given the expected changes in saving patterns, CRISIL expects an increase in the share of financial assets (direct and through mutual funds and insurance) in total financial savings.

    (₹ billion) Mar-13  Mar-14  Mar-15  Mar-16  Mar-17  Mar-18
Gross financial household savings 10,640 11,908 12,572 14,962 14,384 18,696
Currency 1,115 995 1,333 2,005 -3,165 4,708
Deposits 6,062 6,670 6,124 6,445 9,680 5,353
Shares and debentures 170 189 204 284 443 630
Mutual funds 82(0.8%) 150(1.3%) 145(1.2%) 189(1.3%) 208(1.4%) 239(1.3%)
Insurance funds 1,799 2,045 2,993 2,642 3,543 3,504
Provident and pension funds 1,565 1,778 1,909 2,907 3,252 3,679
Others (71) 231 10 679 631 822

Note: Others include claims on government and provident and pension funds

Industry Overview

Recent Performance and Trends

AUM Growth

Against the backdrop of an expanding domestic economy, robust inflows, and rising investor participation, particularly from individual investors, average AUM grew at a CAGR of 17% from ₹4.8 trillion as of March 31, 2009 to ₹25.7 trillion as of September 30, 2019. Over the past five and a half years, growth in aggregate industry AUM has accelerated to a CAGR of approximately 21%, from ₹9.1 trillion as of March 31, 2014 to ₹25.7 trillion as of September 30, 2019.

As of September 30, 2019, there were 41 fund houses with mutual fund AUM.

Number of Fund Houses

Note: Number of fund houses, excluding infrastructure debt funds (IDF).

Equity Markets and Retail Participation

Average AUM of equity-oriented funds grew at a CAGR of 36%, from ₹2.0 trillion to ₹10.9 trillion over this period, while debt-oriented funds grew at a noticeably lower CAGR of 8%, largely due to the recent credit crisis.
ETFs saw robust growth of at a CAGR of 56% over a lower. Average AUM of liquid/ moneymarket funds grew at a rapid pace of 19%.
The share of debt funds fell from 44% as of March 31, 2017 to 26% as of September 30, 2019. Conversely, the share of equity funds rose from 22% as of March 31, 2014 to 42% as of September 30, 2019. The share of other funds rose from 2% as of March 31, 2014 to 6% as of September 30, 2019, driven mainly by ETFs.

Share of Mutual Fund Segments (%)

Note:^^For September 30, 2019, equity includes**

Mutual Fund QAAUM by Segment (₹ billion)

Net Inflows Driven by Equity

Net inflows increased significantly as of Fiscal 2017 as a low interest rate environment globally brought heightened investor interest to Indian markets. The recent credit crisis also affected net inflows into the markets, falling significantly from its peak as of Fiscal 2017.

Net Inflows Over Time (₹ billion)

As of Fiscal 2019, aggregate net inflows of ₹1 trillion were driven by steady inflows into equity funds, even as debt funds saw ongoing net outflows, and liquid and money market funds provided a safe haven with volatile in-and-outflows across quarters.

Quarterly Net Inflows by Segment (₹ billion)

Note:^^ For June and September 30, 2019, equity includes**

Prior to the recent credit crisis, AMCs saw robust and consistent net inflows across asset classes with a peak of ₹3,430 billion as of Fiscal 2017. As of Fiscal 2018, non-equity inflows declined sharply, as ₹2,608 billion in equity net inflows accounted for 95% of aggregate inflows across all asset classes. At the height of the impact of the recent credit crises as of Fiscal 2019, debt outflows of ₹1,244 billion more than offset equity inflows of ₹1,148 billion.

Net Inflows by Segment (₹ billion)

Note:^^ For September 30, 2019, equity includes**

Share of Passive Funds

While passive funds have grown from 0.8% of aggregate industry AUM as of March 31, 2014 to 6.1% of aggregate industry AUM as of September 30, 2019, their share in aggregate industry AUM remains well below that in other developed markets (e.g., approximately 35% of in the United States as of December 2018). In addition, one-off entries into the space like EPFO’s initial allocation to ETFs account for 56-59% of the industry’s ETF AUM as of September 30, 2019.

Share of Passive Funds in AUM (% of AAUM)

Note: Passive funds include gold ETFs, other ETFs, index funds, FOFs investing overseas; Source: AMFI, CRISIL

EPFO Investment in ETFs (%)

Note: Data are as of September 30, 2019. 

Systematic Investment Plan (SIP)

Between April 2016 and September 30, 2019, the aggregate amount invested through SIPs has grown from ₹31 billion to ₹82.6 billion per month. This surge is the result of low contribution minimums increasing accessibility to lower income households.
This is reflected in an increase in the number of SIP accounts, from 21.1 million as of March 31, 2018 to 28.4 million as of September 30, 2019.
The industry added roughly 925,000 SIP accounts each month in the first half of Fiscal 2020, with an average per month ticket size of ₹2,910 per account. The average ticket size has come down from a high of ₹3,375 as of Fiscal 2018 to ₹2,910 in the first half of Fiscal 2020.
As of Fiscal 2019, the mutual fund industry collected approximately ₹927 billion through SIPs, an increase of 38% over the ₹672 billion collected as of Fiscal 2018.
In the first half of Fiscal 2020, SIP contributions to mutual funds have already reached ₹493.6 billion. As of September 30, 2019, aggregate SIP AUM stood at ₹2.9 trillion or 12% of total industry AUMs.

Systematic Investment Plans

Market Share Analysis – Domestic Mutual Fund AUM

As of March 31, 2019, the ten largest AMCs by AUM collectively account for 83% of the Indian mutual fund industry’s assets and are thus a major driver of the industry’s overall performance. The Top 10 AMCs data and analyses set forth herein are as of March 31, 2019. The Top 10 AMCs’ aggregate AAUM grew at a CAGR of 23% from ₹6.8 trillion as of March 31, 2014 to ₹21.2 trillion as of September 30, 2019. Aggregate industry AAUM increased at a CAGR of 21% over the same period.

Top 10 AMCs Share of Aggregate Industry AUM (%)

The share of equity funds in the portfolio of the Top 10 AMCs increased from 24% as of March 31, 2014 to 40% as of September 30, 2019, on the back of rising retail participation and a targeted approach by the top funds. The share of debt funds in the portfolio of the Top 10 AMCs dropped from 53% as of March 31, 2014 to 30% as of September 30, 2019. Liquid/ money market funds have been stable over this period; their average AUM share was 22.5% amongst the Top 10 AMCs.

Top 10 AMCs Aggregate AUM by Segment

Note: Equity includes equity and balanced schemes; others include gold ETFs, other ETFs and fund of funds overseas

HDFC AMC and ICICI Prudential AMC have had the highest market share since March 31, 2014 on the basis of QAAUM.

AUM Composition

Other segments account for over 10% to the assets of SBI AMC, UTI AMC and Nippon India AMC; this share is expected to grow at a higher pace in the coming years due to the growth presence of ETFs. At the industry level, this segment has a approximately 6% share of AUM. UTI manages the largest dividend yield fund (the UTI Dividend Yield Fund) and the largest index fund excluding ETFs (the UTI Nifty Index Fund) in India as of September 30, 2019. It also manages the largest income tax-notified fund in the retirement fund category.

Top 10 AMCs AUM by Segment

Note: Data are as of September 30, 2019 and based on monthly average AUM. Equity includes equity and balanced schemes, others include gold ETFs, other ETFs and fund of funds overseas

B30 Markets

With approximately ₹402 billion or 27% of its overall AUM in B30 geographies, UTI has the highest concentration in B30 markets among the Top 10 AMCs. SBI AMC is the only other player with a concentration of over 20% in B30 markets. The ability to charge an additional 30 bps in B30 locations lowers pressure on scheme margins in these geographies. B30 geographies account for a low proportion of overall industry AUM.

Share of B30 Markets in Top 10 AMCs AUM

Note: Data are as of September 30, 2019. Calculated as share of B30 AUMs to total AUM and share of B30 equity AUM to total equity AUM; Equity includes Growth/Equity oriented schemes and balanced schemes.

Investor Profile of the Industry

Individual Investors Outpace Institutional

Historically, the majority of the industry’s assets were held by institutional investors, mainly corporates. However, the share of institutional investments (corporates, banks/FIs and FIIs) has gradually declined from 52% as of March 31, 2014 to 42% as of September 30, 2019. As of September 30, 2019, at ₹14.1 trillion, individual investors account for 58% of aggregate industry AUM. Expanding at 26% from March 31, 2014 to September 30, 2019, they have become the fastest-growing category. Institutional investor AUM grew from ₹4.3 trillion as of March 31, 2014 to ₹10.4 trillion as of September 30, 2019.

Share of AUM by Investor Classification (₹ billion)

Category Mar-14 Mar-14 Mar-14 Mar-14 Mar-14 Mar-14 Mar-14 CAGR(Mar 14 to Sep19)
Corporates 4,020 4,975 5,788 8,429 9,278 9,546 9,839 18%
Banks/FIs 158 125 150 263 227 302 463 22%
FIIs 73 151 105 127 134 133 80 2%
High net worth individuals 2,256 3,097 3,528 4,762 6,427 7,517 8,882 28%
Retail 1,745 2,481 2,758 3,965 5,295 6,299 5,244 22%
Total 8,252 10,828 12,328 17,546 21,360 23,796 24,508 22%

Between March 31, 2014 and September 30, 2019, the industry grew by 46 million folios to approximately 86 million folios, driven almost entirely by individual investors (retail and high net worth individuals or HNIs). These represented a approximate CAGR of 15% in accounts over the period and an increase in average ticket size from ₹102,142 as of March 31, 2014 to ₹166,354 as of September 30, 2019.

Institutional investor folios, on the other hand, saw no significant additions until Fiscal 2019. However, their average ticket size increased from ₹11.5 million to ₹14.7 million over the same period but has gone down recently as institutional investors have chosen more schemes to diversify their portfolio as a risk mitigation strategy.

Revenue and Profit Growth

CRISIL expects industry revenues to grow at a CAGR of 16% over the same period to total ₹339 billion by Fiscal 2024, driven mainly by growth in AUM, incremental re-allocations of AUM from fixed income to equity-oriented funds (which usually charge higher investment management fees (on actively managed equity funds) than other categories).
CRISIL expects industry profitability to improve and net profits to grow at a CAGR of 17% over the same period to total ₹104 billion by Fiscal 2024, due in part to gradual decreases in the percentage of management fees as a result of higher competition and tighter TER regulations.

Projected Industry Revenue and Profits (₹ billion)

Note: P – Projected; Calculated with respect to total revenue; Financials for Fiscal 2019 and Fiscal 2018 are under Indian Accounting Standards (Ind AS).

Other Revenue Opportunities

● Portfolio Management Services

In India, PMS are offered by AMCs, banks, brokerages and independent investment managers. PMS are usually focused on customised discretionary, non-discretionary or advisory service offerings tailored to meet specific investment objectives.
Apart from managing mutual fund schemes, AMCs in India have started offering tailor-made strategies with higher flexibility to investors through PMS.
As of November 8, 2019, there were 354 portfolio managers (including AMCs) registered under SEBI. As of Fiscal 2019, discretionary PMS dominated the space with an 81% share, followed by advisory (12%) and non-discretionary (7%) services.
As of March 31, 2019, the AUM of PMS asset managers stood at approximately ₹16.1 trillion, reflecting a CAGR of 16% over the last five years. As of June 30, 2019, the AUM of PMS asset managers has grown by 2% over March 31, 2019 to reach approximately ₹16.3 trillion.
However, on November 20, 2019, SEBI announced an increase in the required minimum ticket size for investing in PMS from ₹2.5 million to ₹5.0 million and the minimum net worth requirement for PMS providers from ₹20 million to ₹50 million, effective within 36 months.

PMS AUM (₹ billion)

● Offshore Management/ Advisory Services

Offshore advisory services cater to foreign investors who wish to participate in the Indian markets. The assets under custody (“AUC”) of foreign portfolio investors (“FPIs”)/ foreign institutional investors (“FIIs”) in India have increased from ₹15.9 trillion as of Fiscal 2014 to ₹32.9 trillion as of September 30, 2019. As of September 30, 2019, equity and debt constituted 87% and 13% of the assets, respectively.

FPIs/ FIIs AUC (₹ billion)

Note: * includes hybrid funds

● National Pension System (“NPS”)

AUM of the NPS grew to ₹3,713 billion as of September 30, 2019 from ₹481 billion as of March 31, 2014 at a CAGR of approximately 45%, driven by strong growth across all subscriber classes. In August 2019, Reliance Capital Pension Fund surrendered its NPS licence and transferred all subscribers to LIC pension fund, unless the subscriber specifically opted for an alternative.


(₹ Crore)

  Total Income % Change Total Expenses % Change  Profit for the Year % Change  Total Assets % Change 
31 March 2017 1,048.25   527.72   395.22   2,503.12  
31 March 2018 1,162.75 10.92 617.32 16.98 405.09 2.50 2,919.25 16.62
31 March 2019 1,080.90 -7.04 589.65 -4.48 347.93 -14.11 3,013.26 3.22
30 Sept 2018 520.49   330.26   131.93   2,904.81  
30Sept 2019 496.36 -4.64 257.12 -22.08 208.92 58.36 3,046.82 4.88

Total Income

Total Expenses

Profit for the Year

Total Assets


  Basic EPS(₹) RoNW(%)
31 March 2017 31.57 19.76
31 March 2018 28.73 15.38
31 March 2019 27.83 13.55

Basic EPS(₹) 


Peer Comparison

Name of Company Total Income FY19(In ₹ Cr)  Basic EPS(₹) NAV ₹ per Share P/E RoNW(%)
UTI AMC 1,080.89 27.83 205.41   13.55
Peer Group          
HDFC Asset Management company Ltd. 2,096.78 43.87 144.45 71.70 30.31
Reliance Nippon Life Asset Management Ltd. 1,649.9 7.94 45.36 42.41 18.91

Note: P/E Ratio has been computed based on the closing market price of equity shares available on NSE on December 18,2019
NAV is computed as the closing net worth divided by the number of equity shares outstanding as on September 30, 2019.

Total Income FY19(In ₹ Cr)

Basic EPS(₹)

NAV ₹ per Share




^^Note:Equity funds include: ELSS, arbitrage and balanced funds.
Debt funds include: gilt, income, and infrastructure debt funds.
“Others’ include gold ETFs, other ETFs, and FoFs investing overseas. Average AUM is for the Jul- Sept quarter of the fiscal years.
** Equity includes: growth/equity oriented schemes (other than ELSS), ELSS funds, hybrid schemes, and solution-oriented schemes.
Debt includes: gilt fund/gilt fund with 10 year constant duration, and remaining income/debt oriented schemes.
Liquid/money market includes liquid/money market/floater fund. Others include: index funds, gold ETF, other ETF, and FoFs investing overseas.


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