Mutual Fund Update: Investor composition for May 2019

The domestic mutual fund industry saw its asset under management (AUM) inching towards Rs. 26 lakh crore marks. In the month of May 2019, AUM has increased by 8.56 per cent on a yearly basis. At the end of May 2019, it stood at Rs. 25.43 lakh crore.

The proportionate share of the equity-oriented scheme has remained in a tight range of 40.8 per cent and 42.5 per cent reached in the month of March 2019. The turbulence in the debt market has led to a decline in the share of AUM of debt market in total MF AUM. It has declined from 34.5 per cent at the end of May 18 to 28.8 per cent in the month of May 19. In the same period, the share of liquid and money market fund has increased from 20.4 to 24.4 per cent.

Retail investors continued to dominate the market share of assets in the last year. They now hold 54.1 per cent in May 2019, compared with 52.1 per cent in May 2018. Institutional investors account for 45.9 per cent of the assets, of which corporates are 91 per cent. The rest are Indian and foreign institutions and banks.

Individual investors held Rs. 13.76 lakh crore in mutual funds as of May 2019, an increase of 12.83 per cent over May 2018. Investments of individual investors in equity schemes have increased by 12.26 per cent over May 2018.

Individual assets have mainly come from the top 30 locations, and primarily mutual fund distributors helped these investments. Almost 62 per cent of the assets of individual investors are from T30 cities, brought in by distributors.