Retail investors’ ever-lasting love for equity mutual funds continues to blossom
mutual fund industry spiked from ₹39.88 trillion in September 2022 to ₹47.79 trillion in Sept 2023. Out of this, assets held by individual investors rose from ₹22.75 lakh crore in Sept 2022 to ₹28.10 lakh crore, registering an increase of 23.51 percent, shows industry trends data revealed by the Association of Mutual Funds in India (AMFI). At the same time, the value of institutional assets increased from ₹17.13 lakh crore in Sept 2022 to ₹19.69 lakh crore in Sept 2023, an increase of 14.96 percent.
The overall share of equity mutual funds witnessed a marginal increase as it touched 54.1 percent of the industry assets in Sept 2023, slightly higher than 51.2 percent in Sept 2022. Conversely, the proportionate share of debt-oriented schemes fell from 19.9 percent in Sept 2022 to 18.8 percent in Sept 2023, revealed AMFI’s industry trends. The ETF market share rose from 12.5 percent in Sept 2022 to 12.7 percent in Sept 2023.
The share of individual investors has been growing rapidly year after year. Sample this: individual investors now hold a relatively higher share of industry assets, i.e., 58.8 percent in Sept 2023 as compared with 57.1 percent in Sept 2022. Institutional investors, at the same time, account for 41.2 percent of the assets, of which corporates are 96 percent.
The remaining are Indian and foreign institutions and banks. The dominance of individual investors in equity schemes can further be underscored by the fact that the equity-oriented schemes derive a whopping 89 percent of their assets from individual investors in Sept 2023, exactly similar to the data one year ago. Individual investors include retail as well as high network individuals (HNIs).
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