Individual investors' share in mutual fund AUM surges 44% in a year; equity schemes find more takers, shows AMFI data

Investment in mutual funds is growing month after month and year after year. Across the parameters and yardsticks, investors are putting more money in mutual funds.

Moreover, when it comes to investment by retail investors, this data is even more heartening.

Sample this: The total value of assets held by individual investors spiked 44 per cent in a year, rising from ₹23.92 lakh crore in April 2023 to ₹34.52 lakh crore in April 2024, revealed the data released by the Association of Mutual Funds in India (AMFI).

Higher proportion of assets

Individual investors now hold a higher share of total assets in the industry, i.e., 60.5 per cent in April 2024, nearly three percentage points higher than 57.6 per cent a year ago.

At the same time, institutional investors account for 39.5 per cent of assets, out of which corporates are 95 per cent. The remaining are Indian and foreign institutions and banks.

Overall, the total assets under management (AUM) of mutual funds jumped 37.29 per cent in one year, reaching ₹57.01 lakh crore in April 2024.

Share in equity

Interestingly, not only are individual investors investing more in mutual funds, they are opting for equity schemes.

The AMFI data revealed that 85 per cent of individual investor assets are held in equity-oriented schemes. At the same time, 53 per cent of institutional assets are held in liquid/ money schemes and debt-oriented schemes.

When seen through a different lens, the data speaks the same language. Equity-oriented schemes derive 88 per cent of their assets from individual investors (which include retail and HNIs).

Institutional investors, on the other hand, are dominant in liquid and money market schemes (88 per cent), debt-oriented schemes (61 per cent) and ETFs and FOFs (90 per cent).

In fact, the share of equity schemes is higher than that of debt schemes.

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The proportionate share of equity-oriented schemes is now 58.1 per cent of the industry assets in April 2024, which is over 7 percentage points higher than 50.9 per cent in April 2023, the AMFI data showed.

At the same time, the proportionate share of debt-oriented schemes was 15.9 per cent of industry assets in April 2024, lower than 20.5 per cent a year ago.