Equity appetite of investors increases across all age groups: AMFI

AMFI’s annual data shows that net inflows in equity funds increased across all age groups in five years. The proportion of equity in net inflows is highest in the 25-44 years age bracket. While 36% of net inflows from investors in this age bracket were in equity in FY20, this number has increased to 60% in FY25 clearly showing a shift towards equity.

A similar trend has also been observed in the net inflows of investors in the 45-58 age bracket who have seen the share of equity in their portfolio increase from 49% to 66%. Interestingly, even the portfolios of elderly investors above the age of 59 have seen a sharp increase in equity allocation from 40% to 56% in this five-year period.

The youngest age bracket of investors below the age of 25 have also shown an increase in net inflows in equity from 41% in FY20 to 47% in FY25.

The net inflows in hybrid schemes have also seen increase across age groups, most notably in the investors above the age of 59 from 11% in FY20 to 16% in FY25.

On the other end, the shift towards equity has also led to a decrease in inflows in debt. The investors below 25 and above 59 have the highest net inflows in debt in their portfolios at 21%. The younger investors in the 25-44 years and 45-58 years age bracket have net inflows in debt of 18% and 16% in FY25, respectively.

This shows a sharp decline in inflows in debt which was the highest in the 25-44 years age bracket in FY20 at 49% and 46% in investors above the age of 59. The other age brackets also had higher share of debt inflows in their portfolios in FY20. The investors in the 45-58 age bracket recorded 39% of their net inflows in debt while such a number was 33% for the investors below the age of 25 years.