‘Individual investors prefer distributors for MF investments’

AMFI data shows that individual investors prefer distributors to invest in mutual funds. Of the total assets of Rs.17.27 lakh crore (54% of the total MF assets) of individual investors, close to 80% or Rs.14 lakh crore has come from regular plans through distributors.

In terms of geographical spread, 26% or Rs.4.50 lakh crore of the total assets held by individual investors has come from B30 cities. Of this, distributors have market share of 85% with assets of 22% or Rs.3.80 lakh crore in such locations. Let’s us look at the table to know more about geographical spread of individual assets:

In terms of the scheme-wise break-up, distributors have bought in 85% of individual equity assets, 73% of individual debt assets and 62% of individual liquid/money market schemes.  On the other hand, in the case of ETFs/FOFs, individuals preferred the direct mode which contributed 59% of the total assets.  

Overall, individual investors were largely inclined towards equity-oriented schemes; they hold 70% in these schemes. Equity-oriented schemes include equity and balanced funds.

As compared to March 20, individual investors’ equity assets has increased by 42% to Rs. 12.09 lakh crore in March 21. However, ETFs/FOFs have witnessed the largest jump of 121% due to low base effect. The assets in ETFs and FOFs has grown from Rs.13,000 crore to Rs. 28,000 crore in the last one year.

Similarly, individual investors held Rs. 4.01 lakh crore of debt assets in March 2021  compared to Rs. 3.42 lakh crore in March 2020, a growth of 17%. Liquid/money market schemes also witnessed a modest annual growth of around 5.5% to reach Rs.90,000 crore in March 2021.

 * Rs in crore