Evaluating the retail mutual fund investor

The dominance of the retail investor in the domestic mutual fund industry is increasing with every passing quarter. This is visible in the latest data released by AMFI. At the end of June 2018, retail investors contributed for more than 50 per cent of the entire industry AUM. Individual investors held Rs. 12.26 lakh crore in mutual funds at the end of June 2018, an increase of 29 per cent on a yearly basis.

On examination, we find that investments of individual investors in equity schemes now forms almost 70 per cent of their entire investment in the mutual fund, while debt-oriented schemes from around 30 per cent that too including liquid or money market, as of the end of June 2018. The best part is that they have increased their share in equity-oriented schemes.

Mutual fund distributors have largely contributed to the jump in the number of retail investors in the overall share of mutual fund AUM. Direct investment is still lagging and plays second fiddle to distributors. MF distributors account for little more 65 per of the entire individual assets.

In terms of city wise direct investments accounts for 15 % of total individual assets, divided as 2% from B30 and 13% from T30.