An analysis of classified average AUM published in AMFI shows that many investors prefer regular plans over direct plans to invest in equity funds. Of the total individual equity assets of Rs. 8.87 lakh crore in September 2018, mutual fund distributors manage equity AAUM of Rs.7.87 lakh crore that is close to 90% of individual equity assets.
Individual assets include assets from HNIs and retail investors.
Barring ETFs where most of the assets come in direct plans from institutional investors such as NPS and EPFO, retail investors and HNIs prefer investing through mutual fund distributors for their pure equity, ELSS and balanced fund exposure.
While individual assets in regular plan of pure equity funds was Rs. 5.52 lakh crore, HNIs and retail investors have assets of Rs.80,032 and Rs.1.5 lakh crore in ELSS and balanced funds, respectively.
Experts attribute this to the crucial role of distributors in guiding and educating clients about equity funds. “Before starting on the journey of mutual funds, investors seek advice of distributors who help them identify their financial goals and risk appetite,” said Sunil Subramanian, MD and CEO, Sundaram Mutual Fund.
Seconding Sunil’s view, Swarup Mohanty, CEO, Mirae Asset Mutual Fund said, “Investors seeking long term wealth creation prefer equity funds. However, with hundreds of equity schemes available in the market today, investors seek advisors help to invest.”
Jaipur IFA Ashish Modani believes that increasing awareness about mutual funds has brought in new investors in the mutual fund industry. “Awareness of mutual funds in B30 areas is increasing due to investor awareness programmes and ‘Mutual funds sahi hai’ campaign. Many investors have now begun to invest in mutual funds in these locations,” he said.
The debt funds AAUM from regular plans stood at Rs. 2.62 lakh crore.
Of the total Rs.12.9 lakh AAUM of individual assets in September 2018, Rs. 10.9 lakh crore come from the regular plan.
Retail and HNI AAUM for various categories in September 2018
|
Category |
Regular AUM of retail investors and HNI as on September 2018 |
% of Regular Investment |
Direct AUM (Retail +HNI) as on September 2018 |
|||
|
Associate distributors |
Non-associate distributors |
|||||
|
Retail |
HNI |
Retail |
HNI |
|||
|
Debt |
12,329.95 |
36,826.17 |
59,473.14 |
1,53,966.93 |
80% |
67,439.33 |
|
Liquid /Money Market |
538.73 |
6,911.43 |
7,001.06 |
24,860.50 |
55% |
32,112.85 |
|
Equity |
50,252.41 |
60,347.46 |
4,08,172.72 |
2,68,643.76 |
89% |
99,668.16 |
|
ETF |
2.00 |
0.33 |
290.38 |
252.94 |
10% |
4,823.88 |
|
FOF overseas |
13.93 |
14.92 |
487.44 |
591.86 |
80% |
284.68 |
|
TOTAL |
63,137.02 |
1,04,100.31 |
4,75,424.74 |
4,48,315.99 |
84% |
2,04,328.90 |
|
GRAND TOTAL |
12,95,306.96 |
|||||
Retail and HNI AAUM for various categories in September 2018
Figure in crore
Source : AMFI
* Sponsors contribution are excluded in this data
