February 28, 2023

Retail mutual fund assets base grows 9.3% to over US$ 282.9 billion (Rs 23 trillion) in January

Posted By: ndeeney

Retail mutual fund assets base grows 9.3% to over US$ 282.9 billion (Rs 23 trillion) in January

According to the Association of Mutual Funds in India (AMFI), the value of assets owned by retail investors increased by 9.3% to US$ 282.9 billion (Rs 23.4 lakh crore) in January, reflecting an increase in their interest in the Indian mutual fund industry. In January 2022, the assets held by retail investors in mutual funds were US$ 258.7 billion (Rs 21.40 lakh crore). The increase in the asset base is mostly due to advanced Systematic Investment Plan (SIP) flows, which reached US$ 1.57 billion (Rs 13,000 crore) for the fourth consecutive month in January 2023. AMFI has played a vital role in raising awareness of mutual funds among individual investors. Flows through SIP increased to US$ 1.67 billion (Rs 13,856 crore) in January 2023 from US$ 1.64 billion (Rs 13,573 crore) in December 2022, according to AMFI data. SIP inflow remained above the US$ 1.57 billion (Rs 13,000 crore) threshold for the fourth straight month in this period.

The total amount of assets handled by the mutual fund sector climbed by 4.93% to US$ 493.3 billion (Rs 40.8 lakh crore) in January 2023 from US$ 470.27 billion (Rs 38.89 lakh crore) in December 2022. In addition to the asset base, the percentage of retail investors’ assets in the industry climbed to 57.3% during the evaluation period from 55% in January 2022. Institutional investors account for 42.7% of assets, with corporations accounting for the remaining 96%. Banks and other institutions from India and outside make up the remainder.

Institutions invest predominantly in liquid, debt-oriented strategies, Exchange-Traded Funds (ETFs), and Fund of Funds (FoFs), whereas individual investors typically hold equity-oriented schemes. Equity-oriented schemes account for 80% of individual investor assets. 59% of an institution’s assets are kept in debt- and liquid money market schemes.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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