Individual investors hold 63% of mutual fund assets
Mutual fund assets held by individual investors have jumped nearly 39% year-on-year in December 2024, according to the latest data from the Association of Mutual Funds in India (Amfi). Of the total MF assets of Rs 69.33 lakh crore, individual investors—which includes retail and HNI investors—accounted for Rs 42.58 lakh crore or 63%. Overall, the MF industry assets under management (AUM) grew from Rs 51.09 lakh crore in December 2023 to Rs. 69.33 lakh crore in December 2024.
The data also shows that individual investors prefer equity-oriented schemes and hold 88% of their assets in such schemes. In this category, the holdings of individual investors jumped 45% YoY. The proportionate share of equity-oriented schemes is now 60.6% of industry assets in December 2024, up from 56.5% the previous year. The proportionate share of debt-oriented schemes is 14.6% of industry assets in December 2024, down from 17.5% the previous year. ETF market share was 12.3% in December 2024, down from 12.9% the previous year.
Goa-based mutual fund distributor Hari Kamat, who runs HGK Investment Avenue, believes that the popularity of equity-oriented schemes indicates the better returns and taxation benefits in equity. He says, “We must know that it’s only in mutual funds where investors don’t prefer debt as an asset class, otherwise there are many investors who would invest in other debt instruments. Moreover, equity has given mark to market appreciation and in mutual funds SIP is mainly done in equity class.”
Hitesh Jain of Finomatic Fintech Services says retail investors generally get swayed by market momentum and, hence, prefer equity funds as markets were doing. However, with the current correction in the stock market they could flock towards debt and hybrid categories.
On the other hand, institutional investors hold 53% of their total assets of Rs 26.75 lakh crore in liquid, money market and debt-oriented schemes. Institutional investors account for 38.6% of the total MF assets of which corporates are 94%. The rest are Indian and foreign institutions and banks. The value of Institutional assets has increased from Rs.20.39 lakh crore in Dec 2023 to Rs.26.75 lakh crore in Dec 2024 an increase of 31.20%.