MF Update: Retail investors share of industry assets Falls
DSIJ IntelligenceCategories: MF Unlocked
Volatility in the equity market, where retail investors are major investors, has led to a continuous fall in inflow during the last three months.
Assets managed by the Indian mutual fund industry have grown from Rs. 23.59 lakh crore in November 2018 to Rs. 24.52 lakh crore in January 2019. This represents a growth of 3.9 per cent in assets over November 2018. Nevertheless, retail investor’s share of industry assets in the same period has seen a continuous decline. It has declined from 54 per cent at the end of November 2018 to 53.3 per cent at the end of January 2019.
One of the reasons for such fall in the share of retail investors is the volatility in the equity market, as equity-oriented schemes derive 88 per cent of their assets from individual investors including HNIs. The fall in the market has also led to a slowdown in inflows in the equity-dedicated schemes. Moreover, in the same period, we have witnessed inflows increasing in money market funds. Institutional investors dominate liquid and money market schemes (87%), debt-oriented schemes (53%) and ETFs, FOFs (93%).