AMFI data shows that the share of individual investors in the mutual fund industry AUM fell to 52.2% in March 2020 from 55.1% in March 2019. The total assets of individual investors stood at Rs.12.90 lakh crore as on March 2020 compared to Rs.13.62 lakh crore in March 2019.
Individual investors include retail investors and HNIs.
Swarup Mohanty, CEO, Mirae Asset says that a decline in individual investors' assets in MFs is worrisome as this has not happened over the last five years. He said, “In the last one year, equity and debt markets have witnessed many challenges. In addition, underperformance of equity funds especially in mid and small cap space and series of credit events have shifted individual investors focus to traditional investments like bank FDs and gold.”
On the contrary, institutional investors' share in the industry increased to 47.8% in March 2020 from 44.9% March 2019. About 93% of such investors are corporates while the rest are FIIs and banks.
Further, data shows that equity oriented schemes derive 87% of their assets from individual investors. Similarly, debt oriented schemes (56%), liquid funds (84%), ETFs, FoFs (92%) derive majority of their assets from institutional players. Overall, individual investors allocate 66% of their total investment in equity oriented schemes while institutional investors allocate 76% of their assets to liquid and debt oriented schemes.
Usually, individual investors hold equity funds while institutional investors are inclined towards debt funds.
