The latest AMFI data shows that individual investors hold assets of Rs.14 lakh crore as on September 2020, which is 52% of the total MF industry’s AUM.
The assets of individual investors have grown by 4% compared to the corresponding period last year. Individual investors include retail investors and HNIs.
Swarup Mohanty, CEO, Mirae Asset India, feels while the industry has witnessed a 4% growth in individual assets, it is not substantial once you factor in mark-to-market gains. “Over the last few months, the industry has witnessed continuous redemption either due to profit booking or poor performance of a few funds. I think the growth number could have been better,” said Swarup.
George Heber Joseph, CEO and CIO, ITI MF said, “Individual investors have relatively higher exposure to equity schemes than debt and other schemes. One reason for this modest growth is the polarized equity market. Although the market has rallied in the past couple of months, only 10-15 stocks have performed well. Besides, many retail investors have invested in small and mid-cap stocks which have not performed yet. All this has slowed down the growth momentum; however, it will only go up now as the economy is recovering,” said George.
Meanwhile, institutional investors have seen their assets grew 13% to Rs.13.32 lakh in September 2020 from Rs.11.76 lakh crore in September 2019. Usually, institutional investors hold debt schemes whereas individual investors are more inclined towards equity schemes.
Further, data shows that 88% of assets of equity oriented schemes come from individual investors. Similarly, institutional players account for majority of the assets of debt oriented schemes (59%), liquid funds (84%), ETFs, FoFs (91%). Overall, individual investors allocate 68% of their total investment in equity oriented schemes while institutional investors allocate 75% of their assets to liquid and debt oriented schemes.
