AUM of individual investors in the mutual fund industry grew by 14% in the last one year, shows AMFI data. With AUM of Rs.14.85 lakh crore, individual investors now hold 53% of overall industry assets.
Individual investors include both retail investors and HNIs.
Of the total AUM of individual investors, Rs.10.31 lakh crore was equity as on January 2020. Generally, individual investors particularly retail investors prefer investing in equities.
Investments in debt-oriented schemes by individual investors rose by nearly 6% to Rs. 3.5 lakh crore in January 2020 from Rs.3.3 lakh crore in January 2019. A similar trend was witnessed in ETFs, FoFs, and liquid schemes as their investment reached Rs. 12,967 crore and Rs.89,769 crore respectively.
Overall, majority of the individual investors assets i.e. 81% were distributor driven while 60% of them came from T30 cities and 21% from B30 cities.
Investors who invested through a direct plan amounted to 19% of individual assets of which 3% came from B30 cities and 16% from T30.
Further analysis of data shows that 14% of the investment in equity-oriented schemes came from direct plans while 86% came through distributors.
Meanwhile, in debt-oriented schemes, 24% of the investment came from direct plans and distributors brought in 76% of individual investors.
