The individual wealth in mutual funds is projected to reach Rs.19.67 lakh crore by FY22 by growing at 18% CAGR, states Karvy’s India Wealth Report.
This will push the contribution of individual investors to nearly 5% of the total financial assets held by individuals. In FY17, the figure stood at 4.25%.
The AUM held by individuals in mutual funds including HNIs and retail investors stood at Rs.8.68 lakh crore while the total individual wealth was Rs.204 lakh crore in FY 2017.
On a broader level, the report expects that individual wealth in financial assets will grow to Rs.403 lakh crore in FY 2022 from Rs.204 lakh crore in FY 2017. Hence, financial assets will constitute around 63% of the total individual assets. Within financial assets, direct equity will emerge as the biggest contributor of individual wealth.
“Equity has emerged as the favoured asset class in FY 17 with individual investors cashing in on the current bull run of the equity markets. Apart from the outperformance of equities, a host of structural reforms implemented by the government are encouraging Indian individuals to hold wealth in financial assets. Going ahead, financial assets are likely to sustain their dominant position,” said Abhijit Bhave, CEO, Karvy Private Wealth.
In FY 2017, financial assets constituted 59% of the total individual assets.
