Retail investors’ proclivity for equity mutual fund schemes continues to increase as time rolls on. The latest data released by the Association of Mutual Funds in India (AMFI) speaks volumes about retail investors’ ever-growing love for equity mutual funds.
Sample this: As equity takes precedence over other fund categories, proportionate share of equity-oriented schemes is now 51.6 percent of the industry assets in March 2023, higher than 48.9 percent in March 2022.
On the contrary, the proportionate share of debt-oriented schemes is 19.6 percent of industry assets in March 2023, down from 23.1 percent in March 2022.
At the same time, ETF market share has risen from 11.6 percent in March 2022 to 13.1 percent in March 2023.
Also, assets managed by the Indian mutual fund industry spiked from ₹37.70 trillion in March 2022 to ₹40.05 trillion in March 2023, representing 6.22 percent in assets over March 2022.
Retail investors lap up equity schemes
The latest data shows that mutual fund investments, increasingly, are made by individual investors in contrast with institutional investors.
Individual investors now hold a relatively high share of industry assets i.e., 58.1 percent in March 2023, compared with 55.2 percent in March 2022.
|Date||Individual (%)||Institutional (%)|
What is interesting to note is that equity-oriented schemes derive 89 percent of their assets from individual investors (retail and HNIs) against 88 percent a year ago.
Also, institutional investors dominate liquid and money market schemes (85%), debt-oriented schemes (57%) and ETFs, FOFs (89%).
Another interesting data point that reaffirms individual investors’ fancy for equity is that 79 percent of individual investor assets are held in equity-oriented schemes (see pie chart below) whereas 59 percent of institutional assets are held in liquid or money market schemes and debt-oriented schemes.
Also, value of assets held by individual investors in mutual funds rose from ₹20.81 lakh crore in Mar 2022 to ₹23.27 lakh crore in Mar 2023, an increase of 11.80 percent.
At the same time, value of institutional assets fell from ₹16.89 lakh crore in March 2022 to ₹16.78 lakh crore in March 2023, a marginal fall of 0.66 percent.