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Mumbai6 minutes agoAuthor: Ajit Singh
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- Retail investor assets grew 3.92% in 1 year, while institutional investors’ assets grew 13.69%
- 47% in the entire industry while only 15% of retail investor assets come from direct investment
Direct investment is not available to retail investors in mutual funds. This is the reason that till now most retail investors invest through distributors (distributors). Also, retail accounts for 90% of the total fund industry of the mutual fund industry, but accounts for 55% in Asset Under Management (AUM).
28.34 lakh crore AUM in October 2020
According to data from the Association of Mutual Funds in India (ANFI), total assets stood at Rs 28.34 lakh crore in October 2020. Out of this, retail investors share 14.64 lakh crore rupees. It increased by just 3.92% compared to October a year ago. At the same time, the assets of institutional investors have been Rs 13.70 lakh crore. It increased by 13.69% compared to October a year earlier.
80% of retail investors invest through distributors
According to the data, 80% of retail investors invest through distributors. 15% of retail assets come from direct investment. 47% of the assets in the entire industry come from direct investment. Similarly, 85% of institutional investors invest directly in mutual funds. 75% of high net worth investors (HNIs) invest through distributors. Direct’s share mostly comes from non-equity schemes.
The mutual fund industry has a total of 9.33 crore folios. It has 90.1% retail investor folios i.e. 8.40 crores. Apart from this, 84.28 lakh folios belong to HNI while 7.85 lakh folios belong to institutional investors.
The fund industry’s folio has just doubled in 11 years
The entire industry had 4.76 crore folios in March 2009. That is, the number of folios has just doubled in 11 years. The data from ANFI suggest that 16% of the assets of the mutual fund industry come from the cities next to the top 30 (AB-30). Equity scheme accounts for 62% of the B-30. 48.8% of the equity is assets that are invested for more than two years.
B-30 gets 3% direct investment
The B-30 has a direct 3% investment, while the distributor has 22%. Top-30 (T-30) has 17% direct investment while 58% comes from distributors. The equity scheme held 39.6% of the entire industry in October 2020. It was 42.4% in October 2019 a year ago. It was 28.4% in debt last year, which has now increased to 32%. Similarly in liquid it has increased from 20 to 23% while in ETF it has reduced from 8 to 6%.
Individual investor holding reduced to 51.7%
Talking about the holding of individual investors, their holding was 53.9% in October 2019. In October this year, it has come down to 51.7%. The holding of institutional investors has increased from 46 to 48.3%. Individual investors hold 88% stake in the equity scheme category. While institutional investors hold 84% in the money market scheme category.
Maharashtra, Gujarat, Delhi, Karnataka and West Bengal among the top 5 states
Talking about the top 5 states in equity, Maharashtra has the highest amount of Rs 3.46 lakh crore. 96,672 crore comes from Gujarat, 90,990 crore from New Delhi, 83,838 crore from Karnataka and 75,748 crore from West Bengal. While debt comes to 3.82 lakh crore from Maharashtra, 80,442 crore from New Delhi, 69,682 crore from Gujarat, 68,803 crore from Haryana and 67,368 crore from Karnataka.
Orissa, Jharkhand, Bihar, Goa, Chhattisgarh and Assam are quite backward in mutual fund investment. None of these states contribute even one percent.