Even as financial markets witnessed volatility in FY 2018-19, individual investors increased their contribution in mutual funds. The latest AMFI data shows that the share of individual investors rose to 55.1% or Rs.13.54 lakh crore of the total industry assets in March 2019, as against 51.4% or Rs.11.67 lakh crore in the corresponding period a year ago.
Individual investors include retail investors and HNIs.
As on March 2019, assets managed by Indian MFs stood at Rs.24.58 lakh crore, 8.25% higher from Rs.22.71 lakh crore a year ago.
Experts said that individual investors’ share in the industry’s assets increased largely due to the popularity of SIPs. Last fiscal, the MF industry registered 109.54 lakh new SIP accounts. The total amount collected through SIPs during FY 2018-19 was Rs.92,700 crore.
Meanwhile, institutional investors’ share in the MF industry declined to 44.9% in March 2019 from 48.6%. However, such a share remain unchanged in percentage terms. Sunil Subramaniam, MD, Sundaram MF said, “In absolute terms, institutional investors’ contribution to total assets was largely unchanged, whereas individual investors increased their share through SIPs. AMFI’s Mutual Fund Sahi Hai campaign and distributors played an important role in this.”
George Heber Joseph, CEO, ITI AMC also struck a similar tone. George said that while some institutions were cautious about investing in debt funds following the crisis at IL&FS, retail investors continued their SIP investments in equity funds.
AMFI data shows that individual investors primarily hold equity-oriented schemes, while institutions hold liquid and debt-oriented schemes.
While individual investors allocate 68% of their total investment in equity-oriented schemes, institutional money largely goes to liquid and debt products.
Further, based on the contribution of investors across schemes, AMFI data shows that equity-oriented schemes derive 88% of their assets from individual investors. Institutional investors have 86% share in liquid and money market schemes. Institutional investors also dominate debt-oriented schemes with 53% share and ETFs, FoFs with 91% share.
