AMFI data shows that the share of individual investors' assets in the MF industry has risen to 53.8% in June 2021 from 50.5% in June 2020.
The total assets of individual investors were Rs.18.34 lakh crore in June 2021 compared to Rs.13.18 lakh crore in June 2020.
Individual investors include retail investors and HNIs.
Meanwhile, institutional investors’ assets in the industry have fallen to 46.2% in June 2021 from 49.5% in June 2020. Institutional investors are mainly banks, insurance, pension funds and large corporates.
Neil Parikh, CEO, PPFAS MF attributes the rise in individual investors’ assets to the current boom in the equity market. “The growth in individual assets is largely due to their to exposure to equity funds and subsequent rally in the market. Also, the MF industry has acquired many new investors over the last three months. It will be interesting to see if these investors stay calm in times to come,” said Neil.
MFD Rishabh Adukia of Nine Cube from Mumbai feels that high risk reward in equity mutual funds make it attractive for many young investors to start investing. “Equity inflows in the last couple of months also tell this story,” said Rishabh.
Further analysis of the data shows equity schemes account for 88% of the total assets from individual investors. Similarly, debt schemes (62%), liquid schemes (85%) and ETFs, FoFs (90%) get majority of their assets from institutional players.
Individual investors hold 72% of their assets in equity-oriented schemes while institutions hold 69% of their assets in liquid / money market schemes and debt-oriented schemes.
Depleting asset quality in debt papers and instances of trouble in debt funds in the recent time have kept retail investors away from debt funds, added Neil.
