RIAs’ contribution in direct plans of equity funds has risen gradually. Of the total equity gross sales of Rs.3,719 crore in direct plans, RIAs contributed Rs.781 crore or 21%, shows a CAMS report that covers 67% of the industry AUM.
The March figures are slightly higher than those of December 2018. In December, RIAs’ contribution to direct plans of equity funds stood at 19%.
Equity funds include pure equity funds, ELSS, and balanced funds. We have excluded arbitrage funds, ETFs and index funds as inflows in these schemes are largely driven by HNIs and corporates.
Mumbai RIA Suresh Sadagopan of Ladder7 Financial Advisories attributed this steady increase to rise in the number of RIAs especially online apps such as ET Money and Paytm Money.
Further analysis of data shows that of the total equity gross inflow of Rs.3,719 crore in direct plan, Rs.454 crore has come through SIPs. The remaining Rs.3,265 crore is lumpsum investment.
While RIAs account for 30% of the direct plan SIPs, they contribute 20% in lumpsum investment.
Overall, distributors still dominate the industry’s equity investments. The MF industry’s total inflow in equity funds came at Rs.16,619 crore in March. Of this, RIAs’ contribution of Rs.781 crore is mere 5%.
Source: CAMS
Debt funds
Of the total gross inflows of Rs.24,422 crore in direct plans of debt funds, RIAs account for Rs.6,004 crore, 21% to the total gross sales in direct plans of debt funds.
