Listen to this article
An analysis of AUM data done by Cafemutual reveals that the contribution of individual investors in passives AUM went up over by 4% in the last one year.
The contribution of individual investors in passives AUM now accounts for 21% of the total assets in Dec 2023 as against 17% of the total passives’ assets in Dec 2022.
Of the total passives AUM of Rs.8.50 lakh crore, individual investors which includes contributions from both retail and HNIs account for Rs.1.75 lakh crore in Dec 2023.
While HNIs assets in the total passive AUM funds was 15.46% or Rs.1.31 lakh crore, passive funds saw 5.20% or Rs.44,000 crore of its total assets coming from retail investors.
Further, if we look at the total individual assets of Rs.31 lakh crore, 6% of it or Rs.1.75 lakh crore was in passives.
Chintan Haria, Principal - Investment Strategy, ICICI Prudential MF feels that many individual investors have started integrating passives in their investment portfolio. Chintan said, “If we exclude EPFO’s share, the contribution of individual investors will be even more. In my view, while passives are relatively new concept for investors, many investors are investing in them due to its low cost and easy to understand structure.”
Pratik Oswal, Head of Passive Funds, Motilal Oswal MF said that that HNIs have the capacity to invest more and hence, their share in passives is larger than retail investors.
