With over 4 crore folios, retail investors constitute 96% of folios in the mutual funds industry as on June 2015. The average ticket size of each retail folio is Rs.61,369, shows the latest AMFI data.
Currently, the mutual fund industry has 4.28 crore folios as on June 2015. AMFI data shows that 99% of these folios are held by individual investors - retail investors and HNIs. While retail investors constitute 4.08 crore folios, HNIs have close to 15 lakh folios in mutual funds. Institutional investors held another 3.80 lakh folios. The average ticket size of each folio in the mutual fund industry is Rs.2.74 lakh. An investment of Rs. 5 lakh or more by an individual is deemed to be HNI and below Rs. 5 lakh to be retail.
Since March 2014, the mutual fund industry has witnessed a growth of 8% in its folio count. The total folio count in mutual funds has increased from 3.95 crore in March 2014 to 4.28 crore June 2015. Experts say that stellar performance of mutual funds compared to other asset classes has led to a revival of retail interest in mutual funds.
The growth in folio count is completely driven by equity funds. Nearly 81% of the folios are in equity schemes. Over 99% of equity folios are held by individual investors. The average ticket size of each equity folio is Rs.1.17 lakh as on June 2015. In addition, equity folios have a longer average holding period compared to debt and liquid folios. 41% of equity assets have been held for over 2 years.
Similarly, debt funds account for 16% of folio count. Nearly 98% percent of debt fund folios are held by individual investors. The average ticket size of debt funds is Rs.7.87 lakh per folio. Liquid funds account for only 1% of overall folio count of the industry. However, the average ticket size of this category is the highest compared to other categories with Rs.63 lakh per folio due to larger participation from HNIs and institutional investors.
Overall, institutional investors including FIIs have the largest ticket size in mutual fund folio count with Rs.13 crore per folio. This is followed by HNIs with an average ticket size of Rs.21.6 lakh per folio.
