The average ticket size of retail folio has gone up from Rs. 61,369 in June 2015 to Rs. 65,773 in June 2016 which indicates that retail investors have increased their equity allocation. This was despite 3% drop in Sensex during the same period.
If we take into account all categories of investors, the average ticket size per folio in equity funds is Rs. 1.20 lakh.
The increase in ticket size of retail folios can be attributed to the rise in average ticket size of SIPs in equity funds in the last two years. “50% of inflows in equity funds are coming through SIPs and SIP ticket size is also increasing. From Rs. 2,400 two years back, the average SIP ticket size has increased to 3,000 now. As a result, the industry now has more than 1 crore SIP folios,” said Himanshu Vyapak, Deputy CEO, Reliance Mutual Fund.
Himanshu said that SIP inflows have gone up from Rs. 1,400 crore in 2014 to Rs. 3,200 crore now.
IFAs say that the rise in retail ticket size can be also attributed to increased allocation to balanced funds. “Distributors are recommending balanced funds because this category has generated returns on par with large cap funds. These funds have lower degree of risk,” says Satish Pandey of Imperial Investment Consultancy.
The retail folios in balanced funds grew from 19.91 lakh in June 2015 to 24.47 lakh folios in June 2016 while the AUM increased by Rs. 5,220 crore during the same period.
AMFI data shows that retail folios have been rising consistently since September 2014. In fact, the industry has added 56.50 lakh retail folios in the last one year. (Retail equity folios accounted for 37.91 lakh rise.) Consequently, retail equity assets grew by Rs. 32,033 crore from Rs. 1.95 lakh crore to Rs. 2.27 lakh crore during the same period.
There are 4.89 crore folios in the mutual fund industry on June 2016, of which 95% (4.65 crore) is accounted for by retail investors.
