Buisness

Over half of the $40 trillion in assets managed by the MF sector are contributed by retail investors, according to AMFI

As of March 2023, individual investors, including high-net-worth individuals (HNIs), owned mutual funds valued at Rs 23.27 lakh crore, up 11.80% from the previous month.

As of March 2023, the asset under management (AUM) for the MF sector has increased by more than five times in the previous ten years. According to AMFI statistics, the AUM increased from Rs 7.01 trillion in March 2013 to Rs 39.42 trillion on March 31, 2023.

Individual investors increased their interests in equity-oriented schemes, such as equities and balanced funds, by 13% in the year that ended in March 2023, compared to a 0.16% growth in debt-oriented schemes.

Additionally, according to AMFI statistics, liquid or money-market mutual funds had a 30% rise, while exchange-traded funds (ETFs) and fund-of-funds (FoFs) grew by roughly 21% during the same time frame.

With the exception of ETFs and FoFs, which were propelled by direct investments, distributors were mostly responsible for the rise in individual stock holdings. Indirect individual investments made for 18% of the rise in individual investments made through MF distributors, which was led by the top 30 cities.

The increase has been divided into two categories by AMFI: Top 30 (T30) and Beyond 30 (B30). Metropolises like Delhi, Mumbai, Bengaluru, and Kolkata were among the top 30 cities, while the other towns were referred to as B30.

26 percent of all individual investments originated in B30 cities, while distributor-driven investments made up 21 percent of the total and direct investments made up 5 percent. This demonstrates that distributors were responsible for 77% of growth while direct investments accounted for 23%. In contrast, the study states that direct investment made up 22% of all individual assets (4% from B30 and 18% from T30).

Segment-Wise

Notably, distributor-driven investments were greater than direct investments for equity-oriented programmes in both T30 and B30 cities. Direct investment outpaced distributor-driven investment in both T30 and B30 for the ETF and FoF categories.

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