Anatomy of retail mutual fund investors

The asset under management (AUM) of the domestic MF industry witnessed a growth of 8.25 per cent in the last one year ending March 2019. It was growth in retail investors that pushed AUM higher. Individual investors now hold Rs. 13.54 lakh crore in mutual funds as of March 2019, an increase of 16.08 per cent over March 2018. Most of this has come from growth in equity-oriented schemes.

Category of Funds Where His Investment Goes

In terms of origination of investment, we see that T30 still has a higher share in retail MF assets. Moreover, most of these investments are distributor driven, 63 per cent of the assets of individual investors from T30 cities, brought in by distributors. Direct investments amount to 17 per cent of the individual assets, divided as 3 per cent from B30 and 14 per cent from T30.

Where does the investor out his money? It has been seen that equity is the preferred route of investment, though, a small portion of direct investors are opting for ETFs from T30 location.