A recent AMFI study finds that individual investors, which include both HNIs and retail investors, hold Rs.10.11 lakh crore in mutual funds as of August 2017. Individual investors held Rs.8.52 lakh crore in March 2017 showing an increase of 19% in just five months.
During the same time, the assets managed by the Indian mutual fund industry have grown from Rs.18.58 lakh crore in March 2017 to Rs.20.59 lakh crore in August 2017, i.e. 11% growth. This indicates that the rate of growth in individual assets is more than that of the industry.
Of the Rs.10.11 lakh crore, individual investors have assets of Rs.6.40 lakh crore or 63% in equity funds. This has increased by Rs.1.24 lakh crore from March 2017. Interestingly, the MF industry has equity AUM of Rs.7.72 lakh crore indicating that individual investors account for 83% of overall equity assets.
Jimmy Patel, CEO, Quantum Mutual Fund attributes the higher participation of individual investors to market rally. “Retail investors have been around for quite some times. Their assets have increased over the years due to mark to market gains. Another reason is continuous inflows in mutual funds through SIP. We have been witnessing large SIP inflows due to increasing awareness about mutual funds,” says Jimmy.
The report also shows that individual investors have invested over Rs.1.14 lakh crore through direct plans, which is 14% of overall assets. Of this, individual investors contributed 12% from T15 cities.
