Average assets per equity folio is Rs.1.21 lakh

Over the last one year, the MF industry has witnessed a decline in terms of average assets per folio of all fund categories except debt funds and solution oriented funds.

AMFI latest data shows that the MF industry has recorded a marginal decline in average assets per equity fund folio. The average assets per folio of all equity oriented schemes, which include pure equity funds and ELSS has come down by 1.45% to Rs.1.21 lakh in 2020 compared to Rs,1.23 lakh in September 2019.

Sunil Subramaniam, CEO, Sundaram MF attributes the fall in average AUM per folio to mark-to-market correction. “Due to extreme volatility in equity schemes, many investors have shifted their investments to debt schemes. In addition, many first time investors have entered the market through online platform with small ticket size.”

Ajit Menon, CEO, PGIM India MF feels digital platforms like Paytm, Zerodha, ETMoney, Kuvera have added a significant number of investors in direct investment over the last one year. “But these investors have started with small amount like Rs.500 and Rs.1000. Further, the industry has not seen a significant increase in investments of existing investors due to covid-19 pandemic,” he said.

Meanwhile, average assets per folio in liquid funds, hybrid funds, ETFs, index funds and FoFs fell drastically in September 2020 compared to last year.

In terms of investor category, AMFI data shows that the average assets per folio of retail investors has come down marginally by 0.4% to Rs.58973. Similarly, the average per folio AUM of HNI and institution investors fell 2% and 5% to over Rs.8 lakh and Rs.8 crore respectively.