Individual investors hold lion share in MF assets

AMFI data reveals that the contribution of individual investors which includes retail investors and HNIs now accounts for 57% of the total MF assets as on June 2023. Last year, individual investors contributed 55% to the total MF assets.

Of the total MF assets of Rs.45 lakh crore, Rs.26 lakh crore AUM has come from individual investors, shows AMFI data.

Mumbai RIA Suresh Sadagopan of Ladder7 Wealth Advisories feel that many people are now aware of the benefits of mutual funds. He said, “Retail investors have understood the importance of mutual funds to create wealth. Interestingly, many retail investors have increased their allocation to debt funds and liquid funds. This shows that they follow asset allocation to deal with volatility."

Further, the data reveals that individual investors primarily hold equity-oriented schemes. On the other hand, institutions hold their assets more in liquid and money markets.

Equity-oriented schemes derive 89% of their assets from individual investors. 

Overall, assets managed by the Indian mutual fund industry has increased from Rs. 37 lakh crore in June 2022 to Rs. 45 lakh crore in June 2023. This represents 21% increase in total assets.