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An analysis of number of folios and AUM data shows that dividend yield funds, focused funds and flexi cap funds have the highest average AUM per folio in FY 2024.
Dividend yield funds has the highest average AUM per folio of Rs. 2.71 lakh. The category has AUM of Rs.24,000 crore and folio count of 8.77 lakh.
Focused funds and flexi cap funds occupy the next two spots with an average AUM per folio of Rs. 2.51 lakh and Rs. 2.43 lakh.
On the other end, small cap funds have the lowest average AUM per folio of Rs. 1.27 lakh. ELSS have the second lowest average AUM per folio of Rs. 1.31 lakh.
In FY 2023, contra funds had the highest average AUM per folio of Rs. 1.93 lakh. Flexi cap funds were the second highest with the average AUM per folio of Rs. 1.90 lakh while focused funds were the third highest with an average AUM per folio of Rs. 1.86 lakh.
Let us look at the tables to know more.
|
Scheme Type |
No. of Folios (March 2024) |
Average AUM (March 2024) (in crores) |
Average AUM per Folio |
|
Dividend Yield Fund |
8,77,410 |
23,792 |
2,71,162 |
|
Focused Fund |
50,83,569 |
1,27,839 |
2,51,475 |
|
Flexi Cap Fund |
1,42,59,500 |
3,46,366 |
2,42,902 |
|
Value/Contra Fund |
61,78,068 |
1,47,987 |
2,39,536 |
|
Large Cap Fund |
1,36,68,455 |
3,10,341 |
2,27,049 |
|
Large & Mid Cap Fund |
92,77,595 |
2,02,389 |
2,18,148 |
|
Mid Cap Fund |
1,40,15,426 |
2,93,303 |
2,09,272 |
|
Multi Cap Fund |
60,71,425 |
1,22,872 |
2,02,378 |
|
Sectoral/Thematic Fund |
1,82,48,179 |
2,92,558 |
1,60,321 |
|
ELSS |
1,61,13,976 |
2,10,525 |
1,30,647 |
|
Small Cap Fund |
1,90,28,082 |
2,42,444 |
1,27,414 |
|
Total |
12,28,21,685 |
23,20,416 |
2,07,300 |
|
Scheme Type |
No. of Folios (March 2023) |
Average AUM (March 2023) (in crores) |
Average AUM per Folio |
|
Dividend Yield Fund |
7,21,382 |
12,321 |
1,70,797 |
|
Focused Fund |
53,15,932 |
98,655 |
1,85,584 |
|
Flexi Cap Fund |
1,27,01,619 |
2,40,774 |
1,89,562 |
|
Value/Contra Fund |
46,66,901 |
89,948 |
1,92,736 |
|
Large Cap Fund |
1,29,73,512 |
2,34,482 |
1,80,739 |
|
Large & Mid Cap Fund |
78,09,179 |
1,26,810 |
1,62,386 |
|
Mid Cap Fund |
1,06,12,983 |
1,83,089 |
1,72,514 |
|
Multi Cap Fund |
41,42,895 |
67,168 |
1,62,128 |
|
Sectoral/Thematic Fund |
1,31,75,494 |
1,70,195 |
1,29,175 |
|
ELSS |
1,52,72,141 |
1,49,877 |
98,138 |
|
Small Cap Fund |
1,08,99,311 |
1,32,944 |
1,21,975 |
|
Total |
9,82,91,349 |
15,06,263 |
1,60,521 |
Pune MFD Nitin Bellara from Zeus Distribution House believes that the higher average AUM per folio of dividend yield funds is due to older folios whose size have increased due to mark-to-market valuation. On high AUM per folio of flexi cap funds, he said, “The popularity of flexi cap funds is quite understandable. They have been sold aggressively by MFDs as diversified equity funds. In addition, flexi cap funds also generate more alpha compared to index funds, which is why investors invest heavily in them. Further, HNIs do not invest in small cap funds and hence, their average AUM per folio is low.”
Gurgaon MFD Sapna Narang from Capital League believes the valuation of small cap funds and risk associated with them do not make them an ideal choice for higher allocation. Pointing out the reason for low AUM per folio of sectoral funds, she said that many investors do not understand sectors and stay away from them.
Sandeep Bagla, CEO, Trust MF believes that investor type is the key reason for low average AUM per folio of small cap funds. He said, “The high returns of small cap funds attracted a lot of unique investors. However, due to their risk levels, the commitment to such funds is low. Due to this, their contribution is also lower. In comparison, flexi cap funds have more mature investors who are looking for steady returns and a balanced portfolio. Due to this, their commitment to the fund is also high and hence they invest higher amounts.”
Bhubneshwar MFD Trinath Lenka from Wallet Finserv also echoed a similar sentiment. He said, “Indian investors have a low risk-taking capacity. Due to this, they invest more in low-risk funds like flexi cap funds and dividend yield funds. Dividend yield funds invest in PSUs which give high dividend amount leading to higher average AUM per folio. Meanwhile, flexi cap funds offer flexibility to increase or decrease allocation based on the market scenario due to which investors feel comfortable to invest in bigger amounts.”
Mumbai MFD Hemant Rustagi from Wiseinvest attributed popularity of flexi cap funds to investor bias towards large cap. He said, “Many investors like the option of investing across market caps with a focus on large cap. Flexi cap funds provide that due to which they receive large allocation of funds.”
