Individual investors (including HNIs) hold a sizeable share of the industry’s assets.
The latest AMFI data shows that individual investors held Rs. 6.07 lakh crore or 48% of industry’s total Rs. 12.55 lakh crore AUM as on August 2015.
If you look at the composition of assets held by individual investors, 59% or Rs. 3.57 lakh crore was held in equity funds. Equity-oriented schemes include balanced funds.
Further, individual investors share in equity funds has gone up by 55% from Rs. 2.31 lakh crore in August 2014 to Rs. 3.57 lakh crore in August 2015. Interestingly, this was largely due to fresh inflows in equity funds. The Sensex has corrected from the peak of 29,000 in January 2015 to 26,000 levels now.
Despite 1% dip in Sensex during August 2014 to August 2015, there has been a healthy increase in the folio count of individual investors in equity funds. The folio count of individual investors in equity funds has increased from 2.95 crore to 3.23 crore, an increase of 28.40 lakh folios during the same period.
Let's look at the quantum of individual investors assets coming from T15 and B15 cities channelised by distributors.
If you look at the geographical concentration of individual assets, majority of it comes from T15 cities which is distributor driven. 67% or Rs. 4.06 lakh crore assets of Individual investors is concentrated in T15 cities, which is channelized by distributors. About 21% of individual assets came from B15 distributors.
Direct plans
Direct plans are more popular in T15 cities. 12% of individual assets are held in direct plans, 10% in T15 and 2% in B15.
Individual investors – scheme level composition
Equity
66% of inflows in equity schemes came from T15 distributors and 25% from B15 distributors. The remaining (7% T-15 and 2% from B-15) came from direct investors.
Debt
71% of debt assets of individual investors came from T15 distributors, 13% from T15 direct investors, and the remaining 16% (14% from B15 distributors and 2% from direct) from B15 location.
Liquid
Majority (86%) of individual liquid assets came from T15 locations. Of this, 53% assets were channelized by distributors and the remaining came from direct individual investors. 13% individual assets in debt funds came from B15 locations, 10% from B15 distributors and the rest 3% from direct investors.
ETFs and FOFs
ETFs and fund of funds investing overseas had the highest share of direct investments. 61% of ETF and FOF assets came from T15 direct investors.
