HNI and retail folios increased by 5.54 lakh in equity funds from March till September 2014.
Retail investors who exited equity funds in 2013 are back in the market. The latest AMFI data shows that retail and HNI folios have increased by 5.54 lakh from March till September 2014. HNIs are defined as individuals investing Rs. 5 lakh and above.
However, on an aggregate basis, retail folios are yet to reach the 3 crore mark yet. As on September 2013 the industry had 3.06 crore retail equity folios. As on September 2014 retail equity folio count stands at 2.90 crore.
Tenure-wise analysis of the holding period of retail investors shows a healthy sign. Out of the Rs. 1.71 lakh crore retail equity AUM, 64% or Rs. 1.10 lakh crore stayed invested for more than two years as on September 2014. In March 2014, out of Rs. 1.36 lakh crore retail equity AUM, 62% or Rs. 84,910 crore was held for more than two years.
Balanced funds
Balanced funds continued to lose folios. Retail folios in balanced funds declined by 9.02 lakh in the last one year. The retail folio count in balanced funds dropped from 26.75 lakh in September 2013 to 26.75 lakh in September 2014.
“Investors have moved from balanced funds to other category. Conservative investors who wish to participate in equities can look at balanced funds with a three to five year time horizon. It’s not that balanced funds as a category is not doing well. AMCs are promoting their balanced funds,” says Nihil Kothari of Etica Wealth Management.
Liquid
The assets under management in liquid funds
went up from Rs. 1.33 lakh crore in March to Rs. 1.84 lakh crore in September 2014
which was reflected by the increase in folio count. The folios increased across
category – retail (19,179), HNI (8792), FIIs (18), banks (236), corporate (1939).
Debt
Debt folios also continued to rise. The folio
count increased by 2.50 lakh from 58 lakh in March 2014 to 60.50 lakh in
September 2014. Retail AUM in debt funds increased by 10% from Rs. 30,707 crore to Rs.
33,750 crore during the same period.
Gold ETFs
Gold ETF folios dropped by -23,471
from 5.02 lakh in March 2013 to 4.79 lakh in September 2014. Gold funds have
yielded – 12% return over a one year period, shows Value Research data.
ETFs
ETFs (other than Gold) saw a rise in folios from 2.02 lakh in
March 2013 to 2.16 lakh in September 2014. There are 29 ETFs in the industry
which collectively manage Rs. 4,736 crore.
|
Retail folios |
|||
|
Category |
Sep-14 |
Mar-14 |
Change |
|
Liquid |
240,750 |
221,571 |
19,179 |
|
Gilt |
43,365 |
48,298 |
(4,933) |
|
Debt |
6,050,823 |
5,800,416 |
250,407 |
|
Equity |
29042978 |
28644263 |
398,715 |
|
Balanced |
1773094 |
2548872 |
(775,778) |
|
Gold ETF |
467841 |
489398 |
(21,557) |
|
Other ETF |
207516 |
194534 |
12,982 |
|
Overseas FOFs |
153824 |
167894 |
(14,070) |
|
Total |
37,980,191 |
38,115,246 |
(135,055) |
|
Source : AMFI |
|||
The rise in equity folios was offset by drop in other category. The total number of retail folios across all category dropped by 1.35 lakh to 3.79 crore in September 2014 from 3.81 crore in March 2014 as investors exited from balanced funds, overseas fund of funds, Gold ETFs and gilt funds. Gold has lost some sheen lately due to its falling price while gilt funds have been battered due RBI’s reluctance to cut interest rates.
With the Sensex reaching new high it remains to be seen if equity funds continue to attract retail investors.