The aggregate holding of retail equity assets plummet to Rs. 1.27 lakh crore in September 2011, down 15% from Rs. 1.49 lakh crore in September 2010
Mumbai: Retail investors are becoming more impatient in holding on to their equity fund investments if the recently released AMFI data is anything to by. Retail investors held Rs. 96,855 crore in equity assets for more than 2 years as on September 2010 which has dropped to Rs. 78,572 crore in September 2011, a fall of 19%. As a percentage too, assets held for a period above two years now account for 62% against 65% a year back.
Consequently, retail equity holding in the period 6-12 months and 12-24 months as a percentage have seen an increase.
The aggregate holding of retail equity assets has slipped to Rs. 1.27 lakh crore as on September 2011, down 15 % from Rs. 1.49 lakh crore compared to the corresponding period last year. Equity assets account for a significant part of earnings of fund houses.
Retail investors continue to hold the largest pie in equity assets at Rs. 1.27 lakh crore (65%) of the aggregate Rs. 1.96 lakh crore assets as on September 2011 followed by HNIs at Rs. 43,210 crore.
Increased appetite for short term debt funds
Rising inflation and consistent rate hikes have made debt funds popular among retail investors. Retail investor’s allocation in debt funds for a period ranging from 6 months to 12 months has jumped from Rs. 3,733 crore in September 2010 to Rs. 4,397 crore in September 2011. Similarly retail investors average age of holding in non-equity assets ranging from 1 month to 3 month and 6 months to 2 years has seen an increase in the last six months. However, there’s a decline in the age of retail debt assets exceeding 2 years during the same period.
HNI’s are investing for a longer period in debt funds. HNI’s investment holding horizon between 6 months to 1 year has galloped 49% by Rs 10,821 crore from Rs. 22,209 crore (as on September 2010) to Rs. 33,030 crore in September 2011. On the other hand, there’s a decline of Rs. 6,408 crore in equity assets held for more than 2 years by HNIs from Rs. 21,682 crore as on September 2011 to Rs. 15,274 crore during the corresponding last year.