With over 4.36 crore folios, retail investors constitute 95% of folios in the mutual funds industry as on March 2016. The average ticket size of each retail folio is close to Rs.63,200, shows the latest AMFI data.
Currently, the mutual fund industry has 4.58 crore folios as on March 2016. Of these, 99% are held by individual investors – retail investors and HNIs. The AMFI data shows that HNIs held close to 17 lakh folios with average ticket size of Rs.20 lakh as on March 2016. 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 4.58 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.1.21 lakh as on March 2016. In addition, equity folios have a longer average holding period compared to debt and liquid folios. 37% of equity assets have been held for over 2 years, shows AMFI data.
Similarly, debt funds account for 17% of folio count. Nearly 98% percent of debt fund folios are held by individual investors. The average ticket size of debt funds is Rs.7.55 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.66 lakh per folio due to larger participation from HNIs and institutional investors.
Overall, corporates have the largest ticket size in mutual fund folio count with over Rs. 14 crore per folio. This was followed by institutional investors including FIIs with an average ticket size of Rs.10 crore per folio.
