Retail investors assets in equity MF rise 76% in one year

Close to 60% of equity mutual fund assets has come from retail investors. In the last one year, retail assets in equity schemes have grown by 76% to Rs.5.51 lakh crore as on March 2021, shows AMFI data.

Similarly, HNIs assets in equity schemes have increased by 57% to Rs.3.55 lakh crore while FIIs AUM has risen by 60% to Rs.3,622 core.

However, banks' assets in equity schemes have declined by almost 38% to Rs.670 crore.

G Pradeepkumar, CEO, Union MF said that many retail investors have entered equity schemes following the stupendous rally in the equity market in the last one year. “While many individuals faced financial constraints, many salaried individuals have been able to save a good amount of money by working from home. These salaried individuals have invested in mutual funds to earn better risk adjusted returns,” said Pradeepkumar.

Chennai MFD Babu Krishnamoorthy who is also the President IFA Galaxy said that the last one year has been one of the exceptions in the equity markets history. “The surge in equities surely did get many investors to the industry but going ahead volatility will test investors patience,” he cautioned.