Age wise analysis of equity assets shows that the quantum of money held by retail investors in equity funds for over two years was the highest, shows the latest AMFI data.
Of the Rs. 1.68 lakh crore which remained invested in equity funds for over two years as on June 2015, 70% or Rs. 1.18 lakh crore was held by retail investors, followed by HNIs who held Rs. 32,602 crore for more than two years. Traditionally, retail investments are sticky unlike corporates which tend to book profits at regular intervals.
Corporates, FIIs and banks held the least investments for over two years at 7%, 3% and 0.2% respectively.
Investor wise share in equity funds
If you look at the constituent of equity funds holding investor class wise, retail investors held 50% of the total equity assets. Of the total Rs. 4.11 lakh crore equity assets, retail investors held Rs. 2.04 lakh crore in equity funds.
HNIs (those who invest Rs. 5 lakh and above) held Rs. 1.18 lakh crore or 32% of the total equity MF pie. Corporates held Rs. 63,206 crore or 15% of the total equity assets.
Banks and FIIs had only 3% in equity assets. Banks and FIIs typically invest in liquid funds. They tend to book profits from equity funds quickly due to which their age of assets in equity is less.
Non-equity
Debt funds constitute Rs. 7.61 lakh crore or 65% of the total Rs 11.73 lakh crore AUM of the industry as on March 2015.
A large chunk of investments (64%) in debt funds continues to be held by corporates. Corporates held Rs. 4.86 lakh crore in debt funds, followed by HNIs who held Rs. 1.96 lakh crore. About Rs. 1.32 lakh crore or 27% of the total Rs. 4.86 lakh crore AUM held by corporates was invested for a period of 0-1 month.
HNIs held the second largest investments in debt funds and their investment horizon was a bit longer as compared to corporates. Of the Rs. 1.96 lakh crore AUM held by HNIs in debt funds, 31% or Rs. 62,487 crore remained invested for up to two years. Around Rs. 49,132 crore or 25% of the total HNI AUM remained invested for more than two years.
Retail investors held Rs. 42,697 crore or 6% of the total Rs. 7.02 lakh crore total AUM in debt funds. Of the Rs. 42,697 crore debt assets held by retail investors, 37% or Rs. 42,697 crore remained invested for more than two years.
