Listen to this article
An analysis done by Cafemutual of the top ten equity index funds in terms of AUM reveals that Rs.3 out of Rs.10 in equity index funds has come from retail investors.
The study shows that the retail investors account for 29% of the combined assets of the top 10 equity index funds.
Of the total assets of Rs.37,000 crore of the top 10 equity index funds, retail investors contribute assets of Rs.10,500 crore.
In absolute terms, UTI Nifty 50 Index Fund, which is the largest equity index funds in terms of AUM tops the list with retail AUM of Rs. 3,500 crore. HDFC S&P BSE Sensex Fund and HDFC Nifty 50 Plan are the next two in the list with retail participation of Rs.1500 crore and Rs.1460 crore, respectively.
In terms of percentage, UTI Next 50 Index Fund and ICICI Prudential S&P BSE Sensex have the highest proportion of retail assets at 41% each.
Appreciating the growth in index funds, Shrawan Kumar Goyal, Fund Manager, UTI Mutual Fund said that the industry has come a long way in terms of growth of retail assets in passives. “The retail contribution was Rs.1000 crore five years back and now it is close to Rs.30,000 crore. This shows that many retail investors have started putting faith in index funds.”
Talking about the growing popularity of passives, Goyal said that many retail investors do not understand active funds because of its varieties. Many first-time investors choose index funds for the sake of simplicity. Also, the growing number of RIA has contributed to the increase in retail participation in index funds.
Let us look at this table to know contribution of retail investors and HNIs in the assets of the top 10 equity index funds.
|
Scheme |
AUM (cr) |
Retail investor participation |
% of Retail participation wrt AUM |
HNIs |
HNI participation wrt AUM |
|
UTI Nifty 50 Index Fund |
9,500.00 |
3456 |
36% |
3678 |
39% |
|
HDFC Index Fund Nifty 50 Plan |
7,500.00 |
1456 |
19% |
1922 |
26% |
|
HDFC Index S&P BSE Sensex Fund |
4,200.00 |
1501 |
36% |
4015 |
96% |
|
ICICI Prudential Nifty 50 Index Fund |
4,000.00 |
906 |
23% |
1767 |
44% |
|
SBI Nifty Index Fund |
3,250.00 |
771 |
24% |
1177 |
36% |
|
ICICI Prudential Nifty Next 50 Index Fund |
2,600.00 |
752 |
29% |
1436 |
55% |
|
UTI Nifty Next 50 Index Fund |
2,100.00 |
854 |
41% |
908 |
43% |
|
UTI Nifty200 Momentum 30 Index Fund |
2,100.00 |
240 |
11% |
1217 |
58% |
|
Axis Nifty 100 Index Fund |
1,000.00 |
347 |
35% |
530 |
53% |
|
ICICI Prudential S&P BSE Sensex Index Fund |
650.00 |
264 |
41% |
318 |
49% |
|
Total |
36,900.00 |
10547 |
29% |
16968 |
46% |
