Mutual Fund Update: Industry records highest ever individual investor share of AUM

The total asset managed by the domestic mutual fund industry has grown up by 8.25 per cent in the last one year. It has increased from Rs. 22.71 lakh crore at the end of March 2018 to Rs. 24.58 crore at the end of March 2019. Most of the increase has come from the rise in the share of individual investors. It has increased from Rs.11.66 lakh crore in March 2018 to Rs. 13.54 lakh crore in March 2019, an absolute increase of 16.08%. The value of institutional assets has been steady at Rs. 11.04 lakh crore.

It’s now a while when the retail investors have taken over institutional investors in terms of share of the industry asset. Majority of the industry asset is now being derived from individual investors. The latest data by Association of Mutual Funds in India (AMFI) shows that 55.1 per cent of the total domestic MF asset under management (AUM) comes from individual investors compared to 51.4 per cent years ago. The share of institutional investors has declined from 48.6 per cent at the end of March 2018 to 44.9 per cent in the month of March 2019.

When it comes to the composition of assets equity-oriented schemes dominate. The proportionate share of equity-oriented schemes is now 42.5 per cent of the industry assets in March 2019, up from 41 per cent in March 2018. The proportionate share of debt-oriented schemes is 29.1 per cent of industry assets in March 2019, down from 35.3 per cent in March 2018.

Individual investors primarily hold equity-oriented schemes while institutions hold liquid and debt oriented schemes. The latest data show that 68 per cent of individual investor assets are held in equity-oriented schemes, while 78 per cent of institutions assets is held in liquid/money market schemes and debt-oriented schemes.