Even the volatility in equity markets has not affected the confidence of investors as investors have been increasingly pumping money in equity funds. Individual investors, which include retail investors and HNIs, hold Rs. 4.93 lakh crore of equity AUM as on September 2017.
According to the latest AMFI data, individual investors collectively hold 84% of the total equity assets as on September 2017.
In fact, the industry has witnessed an increase of Rs.25,000 crore in the total equity AUM to reach a record high of Rs.8.49 lakh crore in July-September.
The mutual fund industry has witnessed impressive net inflows of Rs.29,045 crore in equity funds including pure equity funds, balanced, ELSS and equity ETFs in September 2017.
Experts believe that the healthy inflows in equity funds is due to increased inflows in mutual funds through SIP. In addition, many investors who waited for the markets to correct have invested in equity funds at market dipsduring the quarter.
While both retail and HNIs primarily invest in equity schemes, institutional investors prefer to invest in liquid and debt funds. Institutional investors dominate liquid funds and debt funds by holding 91% and 62% of assets respectively. Interestingly, institutional investors hold less than Rs. 1 lakh crore of equity assets.
