Of the Rs. 1.65 lakh crore which remained invested in equity funds for over two years, 72% or Rs. 1.19 lakh crore was held by retail investors.
Age wise analysis of equity assets shows that the quantum of money held by retail investors in equity funds for over two years was the highest, shows the latest AMFI data.
Of the Rs. 1.65 lakh crore which remained invested in equity funds for over two years, 72% or Rs. 1.19 lakh crore was held by retail investors, followed by HNIs who held Rs. 30,671 crore. Traditionally, retail investments are known to be sticky unlike institutions which book profit at regular intervals.
Banks, FIIs and corporates held the least investments for over two years at 2%, 0.2% and 8% respectively.
Investor wise share in equity funds
If you look at the constituent of equity funds holding investor class wise, a large chunk of equity assets are held by retail and HNI. Of the total Rs. 3.80 lakh crore managed by equity funds, retail and HNIs together held 84% of the total equity AUM. Retail investors held Rs. 2.03 lakh crore while HNIs held Rs. 1.16 lakh crore. The remaining AUM was held by banks, corporates and FIIs.
“A major chunk of retail investors invest through SIPs. SIP culture has picked up very well among investors. Retail investors are passive compared to HNIs and corporates. Banks and FIIs mostly invest in liquid funds. They book profits from equity funds quickly due to which their age of assets is less. The phenomenon is similar worldwide. The AAA rated US Treasury Fund’s average age of assets is 12 days,” points out Vinod Jain of Jain Investment.
Non-equity
Debt
funds constitute Rs. 7.02 lakh crore or 65% of the total Rs 10.82 lakh crore
AUM of the industry as on March 2015.
A
large chunk of investments in debt funds continues to be held by corporates. Corporates
held Rs. 4.48 lakh crore investments in debt funds, followed by HNIs who held Rs.
1.92 lakh crore. Retail investors held Rs. 43,597 crore or 6% of the total Rs.
7.02 lakh crore total AUM in debt funds.
While retail penetration of debt funds continues to be low their share in debt funds is increasing. Retail investments in debt funds went up by 19% from Rs. 36,621 crore in March 2014 to Rs. 43,598 crore in March 2015. “The growth of retail assets in debt funds is not substantial. Retail investors had lost money in income funds in 2013 so they are now wary of investing in debt funds. Equity has picked up so many retail investors are keen to invest in equity,” adds Vinod.
(HNIs are defined as individuals investing Rs 5 lakhs and above.)
