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. 1.70 lakh crore which remained invested in equity funds for over two years as on December 2015, 71% or Rs. 1.21 lakh crore was held by retail investors, followed by HNIs who held Rs. 33,802 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%, 2% 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 48% of the total equity assets. Of the total Rs. 4.59 lakh crore equity assets, retail investors held Rs. 2.22 lakh crore in equity funds.
HNIs (those who invest Rs. 5 lakh and above) held Rs. 1.50 lakh crore or 33% of the total equity MF pie. Corporates held Rs. 77,678 crore or 7% of the total equity assets. Banks and FIIs held 0.2% and only 2% 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. 8.15 lakh crore or 64% of the total Rs. 12.74 lakh crore AUM of the industry as on March 2015.
A large chunk of investments (65%) in debt funds continues to be held by corporates. Corporates held Rs. 5.31 lakh crore in debt funds, followed by HNIs who held Rs. 2.01 lakh crore. A large portion of investments held by corporates was for up to one month. About Rs. 1.69 lakh crore or 32% of the total Rs. 5.31 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 longer as compared to corporates. Of the Rs. 2.01 lakh crore AUM held by HNIs in debt funds, 32% or Rs. 63,971 crore remained invested for more than two years.
The share of retail investors in debt funds was lesser as compared to other categories of investors. Retail investors held Rs. 53,505 crore or 7% of the total Rs. 8.15 lakh crore total AUM in debt funds. Similar to the holding period in equity funds, retail investors invested for a long haul in debt funds too. Of the Rs. 53,505 crore debt assets held by retail investors, 42% or Rs. 42,697 crore remained invested for more than two years.
