Mutual Fund Holdings Of Individual Investors Rise 20% YoY In May 2023; ETFs, FoFs See Highest Growth: AMFI

Mutual fund holdings of individual investors grew by 20.48 per cent to Rs. 24.77 lakh crore year-on-year (YoY) as of May 2023, driven by investments in equity schemes, exchange-traded funds (ETFs) and fund of funds (FoFs) amid a positive market sentiment.

Investments in equity schemes saw a 22 per cent surge in May 2023 compared to the same period a year ago, data from the Association of Mutual Funds in India (AMFI) shows.

Equity-oriented schemes hold the largest share among other mutual fund categories, at Rs 3,47,573 crore in absolute value. The total holding in the category reached Rs. 19,63,128 crore.

ETFs recorded the highest growth in the category, up 36 per cent to Rs. 61,171 crore. The liquid/money market schemes also show notable growth at 17.63 per cent.

Difference In Asset Composition

Investments in mutual fund schemes were distributed as follows as of May 2023. Equity-oriented schemes collected Rs. 19,63,128 crore, followed by debt-oriented schemes at Rs. 3,63,948 crore. Liquid/money market schemes had Rs. 88,633 crore, while ETFs/FoFs held Rs. 61,171 crore.

In May 2022, investments in debt-oriented schemes were Rs. 3,20,036 crore. Liquid/money market schemes had Rs. 75,355 crore, equity-oriented schemes at Rs. 16,15,555 crore, and ETFs/FoFs at Rs. 44,908 crore.

Distributor-driven investments played a significant role in 2023, comprising 55 per cent of the total assets from T30 cities. Direct investments accounted for 24 per cent of individual assets, with 5 per cent from B30 cities and 19 per cent from T30 cities. T30 cities include major metropolitan areas such as Delhi, Mumbai, Pune, Bengaluru, Kolkata, and Lucknow, while other cities fall under Beyond 30 (B30). In 2022, direct investments represented 22 per cent of individual assets, comprising 4 per cent from B30 cities and 18 per cent from T30 cities.

Distributors held the largest share in equity-oriented schemes, contributing 57 per cent in T30 cities and 23 per cent in B30 cities. On the other hand, individual investors primarily opted for direct plans when investing in ETFs and FoFs, with 47 per cent in T30 cities and 11 per cent in B30 cities.