PESTEL

One of the important factor apart from the macro factors is the political domain which have its
critical impact on investment avenues either equity or the mutual fund.
As an intelligent investors one have to keep the eagle eye on the political event and the acts to
have a safe side while investing.
The principle determinate of the political ecosystem is the election and the result of it highly
Impact the financial market.
Market sentiment at this point decides if it will be bearish or bullish.
Market sentiment can be define as the tone of the market or a common investor attitude towards
an event, which may include the political event. It can be understood as the “crowd psychology”
which gets reflect
As bullish: rising the price or bearish: falling the price. Sometimes it also be term as “investors
sentiments”, even though they are not always based
From the past experience it have been proven that they do impact the markets, and traders can
earn and even loss the money.
The following result are shows while election are on or declaration of new government.
1. Markets sentiments are bullish when the election result are as expected
2. Market result are bearish when election result are opposite of the sentiments.
3. The impact is short term and cannot be predicate.
4. The usual fight began with the bearish and bullish and after some time it impact gives the
response in the fundamental and business performance.
5. Also may have impact the” compound return” in the long run.
ECONOMICS FACTORS
Population
India's population is young, with 54% under the age of 25 and 80% under 45 and the
percentage of working population is rising rapidly.
The younger and working population means
Having high income
High saving leads to investments
CURRENT TREND

TOTAL ASSETS (RS. TRILLION)

Assets managed by the Indian mutual fund industry have grown from Rs. 23.21 trillion in April
2018 to Rs. 25.28 trillion in April 2019. That represents an 8.91% growth in assets over April
2018.

SCHEME WISE COMPOSITION OF ASSETS

The proportionate share of equity oriented schemes is now about 42.4% of the industry assets in
April 2019, up from the 41.3%in April 2018.
The proportionate share of debt oriented schemes is about 29.3% of the industry assets as by
April 2019 down from the 34.9% in April 2018
 INVESTOR TYPE-WISE COMPOSITION OF MUTUAL FUND ASSETS

Individual investors now hold a higher share of industry assets, i.e. 54.7% in April 2019,
compared with 52.0% in April 2018.
Institutional investors account for 45.3% of the assets, of which corporates are 91%. The rest are
Indian and foreign institutions and banks.

INVESTOR CATEGORIES ACROSS SCHEME TYPES

It can been seen from the figure that equity oriented schemes derives 88% of their assets from
individual investors and about 12% of their assets from the institutional investors.
Debt oriented schemes derives 46% of their assets from individual investors and about 54% of
their assets from the institutional investors.
Liquid oriented schemes derives 14% of their assets from individual investors and about 86% of
their assets from the institutional investors.
ETFs oriented schemes derives 6% of their assets from individual investors and about 94% of
their assets from the institutional investors.
COMPOSITION OF INVESTORS’ HOLDINGS

It is clear from the figure that individual investors primarily hold equity oriented schemes while
institutions hold liquid and debt oriented schemes.
About 69% of individual investor’s assets are held in equity oriented schemes, 43 % of
institutional assets are held in debt oriented schemes.
Very less portion are cover by both individual and institution in ETFs.

GROWTH IN ASSET

The value of assets held by individual investors in mutual funds increases from 12.07 lakh cr in
Aprilm2018 to 13.2 lakh cr in April 2019, total increase of 14.48%.
The value of institutional assets have increased from Rs 11.14 lakh cr in April 18 to Rs 11.46
MAJOR PLAYERS
1. SBI Mutual Fund
It was launched in the year 1987, SBI Mutual Fund is present in the Indian Mutual Fund industry
for more than 30 years. SBI manage 5.4 million investors. It has AUM of Rs. 2.5 lakh crore
ending September, 2018.
2. HDFC Mutual Fund
It has launched its first scheme in the year 2000 and since then the AMC has shown a growth.
It has AMU of Rs 342,291 Cr.
3. ICICI Prudential Mutual Fund
It was launched in the year 1993 and since than a company has maintain the customer by
delivering satisfied product solution to the investors. It has AMU of Rs 320,793 Cr.
4. Reliance Mutual Fund
It was launched in the year 1995, Reliance Mutual Fund has been one of the fastest growing
AMCs in the country. It has AMU of Rs 233,617 Cr
5. Aditya Birla Sun Life Mutual Fund
It was launched at 1994 as a joint venture between the Aditya Birla Group and the Sun Life
Financial of Canada. Aditya Birla Sun Life Financial is a global organisation evolved in 1871
and is being represented in Canada, The US, the Philippines, Japan, Indonesia and Bermuda apart
from India. Birla Sun Life Mutual Fund follows a conservative long-term approach to
investment. Recently it crossed AUM of Rs. 10,000 Cr.
6. DSP Mutual Fund
DSP Blackrock is a joint venture between the 150 year old Indian financial firm, DSP Group and
the world’s largest investment management firm, Blackrock. It is one of the premier asset
management companies in India which has over 20 years of track record of excellence in
investment. The fund house deals in 5 main fund classes, namely, Equity Funds, Debt Funds,
Hybrid Funds, International Fund of Funds and Solution Funds. It has AUM of Rs 78,363 Cr

7. Kotak Mutual Fund

It started its operations the year 1998. It has a large customer’s base of approximately 7.5 lac
investors. Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL.
It is presently having more than 1, 99,818 investors in its various schemes. Kotak Mahindra
Mutual Fund offers schemes catering to investors with varying risk - return profiles. It was the
first company to launch dedicated gilt scheme investing only in government securities. It has
AUM Rs 150,099 Cr.
8. TATA Mutual Fund
Backed by one of the most trusted and valued brands in India, Tata Mutual Fund has earned the
trust of lakhs of investors with its consistent performance and world-class service.
Tata Mutual Fund offers an investment option for everyone, whether you are a businessman or
salaried professional, a retired person or housewife, an aggressive investor or a conservative
capital builder.The company aims at seeking consistent and long term results. The AMC has
been operating in India for more than two decades.it has AUM of Rs 54,194 Cr.

9. Principle Mutual Fund

It is the part of the Principal Financial Group -- a global investment management leader
headquartered in Des Moines, Iowa, US. In India, we bring on board the financial strength and
global experience of over 139 years in asset accumulation of Principal Financial Group they
started doing business in India in 2000.Their team serves over 5 lakh customers. They work with
over 20,000 empaneled distributors across the country. The Principal Financial Group in offering
quality investment and long-term financial solutions. It has AUM of Rs 7,091 Cr.

10. L&T Mutual Fund

Since it was launch in the year 1997, it delivers a superior long term risk adjusted performance.
Investor can choose schemes from a host of options like equity, debt, ELSS, Hybrid Fund are the
best performing schemes. It has AUM of Rs 70,944 Cr.