Equity portfolio of domestic mutual funds hit a record high of ₹25.6 lakh crore in June 2023, jumping by 33% year-on-year, reported Economic Times.
The portfolio value has doubled over the past three years following an inflow of ₹2. 5 lakh crore, it said, citing data from Sebi.
The equity portfolio value captures equity exposure of balanced funds, ETFs, index funds along with equity funds. The equity exposure of the domestic mutual funds is the highest among domestic institutional investors followed by insurance companies ( ₹17. 8 lakh crore), banks ( ₹2. 7 lakh crore), and pension funds ( ₹1.7 lakh crore), said the report.
The combined equity exposure of all domestic institutional investors was ₹48. 4 lakh crore in June 2023. The difference between the equity assets under management (AUM) of the domestic and foreign institutional investors has reduced to ₹3 lakh crore compared with about ₹11 lakh crore two years ago, it added.
Domestic funds have been net buyers of equity in 26 out of the past 28 months. The share of domestic mutual funds in the total institutional investors’ equity AUM touched a record 18. 7% in June, as per the report.
On the retail front, despite sustained inflows, equity investments were just over 3.5% of India’s total household savings over the past decade. Property and fixed deposits accounted for 50 percent and 20 percent, respectively, it added.