Retail investors hold over 60% mutual fund assets, 86% in equity alone, reveals AMFI data

The mutual fund industry experienced significant growth in July 2024, with individual investors increasingly driving investment trends. According to AMFI data, individual investors now hold 61% of the mutual fund industry's assets, up from 57.5% in July 2023. This shift reflects a broader trend where individual investors account for 88% of mutual fund assets, including those from retail and high-net-worth individuals. Meanwhile, institutional investors hold 39% of the assets, predominantly from corporations (95%), with the remainder from Indian and foreign institutions and banks.

The total assets managed by the mutual fund industry surged by 39.83%, rising from US$ 556.12 billion (Rs. 46.28 trillion) in July 2023 to US$ 777.58 billion (Rs. 64.71 trillion) in July 2024. Individual investors predominantly favour equity-oriented schemes, with 86% of their assets invested in equities, 9% in debt schemes, 3% in money market schemes, and 2% in ETFs/fund of funds. In contrast, institutional investors have a higher concentration in liquid and money market schemes (88%), debt-oriented schemes (63%), and ETFs/FOFs (90%). The proportion of equity-oriented schemes within the industry rose to 59.9% in July 2024, compared to 52% in July 2023, while the share of debt-oriented schemes decreased to 14.6% from 19.4% over the same period.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.