Value of mutual fund assets held by retail investors spiked 11% in a year, shows AMFI data

Thanks to the advertising blitzkrieg of mutual fund industry, retail investors’ share in the fund schemes has shown a noticeable jump.

The value of assets held by individual investors in mutual funds reported an increase of 10.96 percent as it rose from ₹21.56 lakh crore in April 2022 to ₹23.92 lakh crore in April 2023.

The value of institutional assets has increased from ₹17.33 lakh crore in April 2022 to ₹17.60 lakh crore in April 2023, reporting an increase of 1.59 percent.

Assets managed by the mutual fund industry jumped from ₹38.89 trillion in April 2022 to ₹41.53 trillion in April 2023, reflecting an increase of 6.78 percent in assets over April 2022.

(Source: AMFI, April 2023 industry trends)

The latest data also shows a marginal increase in the proportionate share of equity-oriented schemes which has now risen to 50.9 percent in April 2023, an increase from 49.6 percent a year ago.

The proportionate share of debt-oriented schemes in April 2023 is 20.5 percent of industry assets, down from 22.4 percent in April 2022.

At the same time, ETF market share has increased from 11.8 percent in April 2022 to 13 percent in Apr 2023.

Retail investors' love for equity

It is vital to note that equity-oriented schemes derive 89 percent of their assets from individual investors while debt-oriented schemes get 43 percent of their assets from individual investors.

Another data point that indicates individual investors' fascination for equity is this: 79 percent of individual investor assets are held in equity-oriented schemes, whereas 60 percent of institution assets are held in liquid/ money market schemes.

The latest data also shows that individual investors hold a relatively higher share of industry assets, i.e., 57.6 percent in April 2023, compared with 55.4 percent in Apr 2022.

Institutional investors account for 42.4 percent of the assets, of which corporates are 96 percent.