Where do individual mutual fund investors invest their money?

An analysis of industry AUM data done by Cafemutual shows that individual investors both retail investors and HNIs, have preferred hybrid funds, equity funds and international FoFs to invest their money in September 2024.

Our analysis shows that hybrid funds derive 92% of their assets from individual investors. The category manages total AUM of Rs.3.79 lakh crore. Of this, Rs.3.50 lakh crore AUM has come from individual investors.

Next in the list is pure equity funds which sees 88% of its total assets or Rs.33 lakh crore coming from individual investors. Within pure equity funds, retail investors account for the majority of assets. The data reveals that retail AUM in pure equity funds is Rs.17.14 lakh crore or 52% of the total individual equity assets. 

The third largest fund category in terms of proportion of the total assets coming from individual investors is fund of funds investing overseas. Here 81% of the total AUM or Rs.20,300 crore comes from individual investors.

Gold ETFs and debt funds also see 28% and 26% of their total assets coming from individual investors. 

Other ETFs which include both equity and debt ETFs record 8% of their total assets coming from individual investors.

Let us look at the table to know more.

In terms of schemes, ELSS, pure equity funds and gilt funds are the top three scheme categories which have the highest assets coming from individual investors. 

ELSS records 98% of its total AUM coming from individual investors. Majority of assets within ELSS have come from retail investors. Of the total AUM of Rs.2.60 lakh crore, retail investors have AUM of Rs.2.20 lakh crore or 85% of the total AUM.

Pure equity funds derive 87% of their total assets from individual investors. Here HNIs have slightly higher assets compared to retail investors. 

Gilt funds also recorded a healthy contribution from individual investors at 43% of the total AUM.

Among other fund categories with decent contribution from individual investors include FMPs, debt funds and liquid funds. 

Overall, the MF industry has recorded 62% of its total assets coming from individual investors. Of the total AUM of Rs.68 lakh crore, individual investors account for Rs.42 lakh crore. 

Within individual AUM, while retail investors contribute Rs.18.79 lakh crore or 45% of the total individual AUM, HNIs command 55% of the total individual assets or Rs.23.31 lakh crore in September 2024.

Here is the table: