The average ticket size of each retail folio has increased 24% from Rs.61,369 in June 2015 to Rs.78,328 in June 2017, shows the latest AMFI data.
As on June 2017, the mutual fund industry has nearly 6 crore folios. AMFI data shows that 99% of these folios are held by individual investors - retail investors and HNIs. While 95% or 5.50 crore folios were from retail investors, HNIs hold close to 28.07 lakh folios. An investment of Rs.5 lakh or more falls under HNI category.
Overall, the mutual fund industry has witnessed a growth of 34% in its folio count since 2015. The total folio count in mutual funds has increased from 4.28 crore in June 2015 to 5.82 crore in June 2017.
Experts attribute the growth in folio count to the rise in folios of equity funds including balanced funds. The performance of equity as an asset class over other asset classes has increased the appetite of investors in mutual funds. Currently, over 81% of total industry folio is in equity funds. The average ticket size of each equity folio is Rs.1.49 lakh as on June 2017, which increased by 27% from 1.17 lakh in June 2015.
In addition, the AMFI data shows that equity folios have a longer average holding period compared to debt folios. Nearly 37% of the total equity assets have been held for over 2 years. In June 2015, 41% of equity assets remained invested for more than two years.
Similarly, debt funds account for 16% of folio count. Individual investors held 94% of debt folios.
As institutional players invest heavily in debt funds, the average ticket size of debt funds is higher than equity funds. The average ticket size of debt funds stood at Rs.8.46 lakh per folio in June 2017. It increased by 3% from 7.87 lakh per folio in June 2015.
Liquid funds account for 1% of overall folio count of the industry. However, the average ticket size of this category is the highest compared to other categories with Rs.41 lakh per folio. The average ticket size of the liquid funds decreased 35% from 63 lakh per folio in June 2015.
Overall, institutional investors including FIIs have the largest ticket size in mutual fund folio count with Rs.11 crore per account. This is followed by HNIs with an average ticket size of Rs.18.66 lakh per folio. The average ticket size of HNIs decreased 13% from Rs.21.6 lakh per folio in June 2015.
