The proportion of individual AUM in equity-oriented schemes to the overall industry AUM has increased from 30% to 37% in FY 2017-18, shows AMFI data. The individual AUM of the equity-oriented schemes increased from Rs.5.35 lakh crore in March 2017 to Rs.7.93 lakh crore in March 2018.
Equity-oriented schemes include equity funds, ELSS and balanced schemes.
Experts believe that the healthy inflows in equity funds through SIPs and the lacklustre performance of other asset classes have increased the demand for equity funds among individual investors.
AMFI data also shows that individual investors account for 85% of equity-oriented schemes.
The mutual fund industry saw net inflows of Rs.2.61 lakh crore in equity funds including pure equity funds, balanced and ELSS in FY 2017-18. Also, the industry mopped up close to Rs.67,190 crore in FY 2017-18 through SIPs as against Rs.43,921 crore in FY 2016-17.
The increase in equity folios also display growing investor interest in equity funds.
The total folio count of equity funds including pure equity funds, ELSS and balanced funds went up by 1.5 crore, from 4.43 crore in March 2017 to 5.94 crore in March 2018.
Overall, the total value of assets held by individual investors in mutual funds increased from Rs.8.53 lakh crore in March 2017 to Rs.11.66 lakh crore in March 2018, an increase of 37%.
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 81% and 68% of assets, respectively.