Individual investors, including high-net individuals (HNIs), held mutual funds worth Rs 23.27 lakh crore as of March 2023, up 11.80 per cent from a year ago.
Retail investments in the mutual fund industry grew 11.80 per cent year-over-over (YoY) as of March 2023, showing investors continued faith in the MF industry.
Individual investors, including high-net individuals (HNIs), held mutual funds worth Rs 23.27 lakh crore as of March 2023, up 11.80 per cent from a year ago.
The MF industry’s asset under management (AUM) grew more than five times over the past 10 years as of March 2023. The AUM grew from Rs 7.01 trillion in March 2013 to Rs 39.42 trillion on March 31, 2023, the AMFI data shows.
In the year ended March 2023, investments in equity-oriented schemes, including equity and balanced funds, by individual investors rose by 13 per cent compared to a 0.16 per cent increase in debt-oriented schemes.
In addition, liquid or money-market mutual funds saw a 30 per cent increase, while exchange-traded funds (ETFs) and fund-of-funds (FoFs) saw about 21 per cent growth in the same period, according to AMFI data.
The growth in individual equity assets was mainly driven by distributors, except for ETFs and FoFs, which were led by direct investments. The top 30 cities accounted for 56 per cent of the growth in individual investments driven by MF distributors, while 18 per cent came from direct individual investments.
AMFI has classified the growth city-wise—Top 30 (T30) and Beyond 30 (B30). The top 30 cities included the metros like Delhi, Mumbai, Bengaluru, and Kolkata, while the rest of the cities were referred to as B30.
Twenty-six per cent of individual investments came from B30 cities, where distributor-driven investments stood at 21 per cent and direct investments at 5 per cent of the total. This shows that 77 per cent of the growth was driven by distributors and 23 per cent by direct investments. In contrast, direct investment accounted for 22 per cent of the total individual assets (4 per cent from B30 and 18 per cent from T30), says the report.
Segment-Wise
Notably, for the equity-oriented schemes, in both T30 and B30 cities, the distributor-driven investments were more than direct investments. For the ETF and FoF categories, direct investment was more than the distributor-driven investment in both T30 and B30