Association of Mutual Funds in India (AMFI) publishes the Mutual Fund Industry Data Analysis report. In its recently published report, it has shown the performance of mutuals fund industry including their AUM, investors and growth in the asset. In this post, we elaborate on this report of AMFI to show the Mutual Funds Industry Trends.
Mutual Funds Industry Trends
Find below the report on Mutual Funds Industry Trends.
Asset Managed by Mutual Funds
According to the report, the total asset managed by the mutual fund industry in India has reached Rs 24.09 trillion in December 2018 which was Rs 22.60 trillion in December 2017. This is a growth of around 6.55% in the total asset managed by Indian mutual fund companies in a year. However, this total asset was reached up to Rs 24.70 trillion in August 2018 which was a growth of around 9.29%. But it dipped in October 2018 and reached Rs 23.15 trillion.
Proportionate Shares of Schemes in Total Assets
As per the report, there are 4 types of mutual fund schemes which have their proportionate share in the total assets of the entire mutual fund industry. These 4 types of schemes are debt-oriented schemes, equity-oriented schemes, ETFs & FoFs and liquid/money market funds. Among all these 4 types of schemes, the major stakeholder in total assets are the equity-related schemes, as in December 2018 and they have 41.9% proportionate share. These schemes are followed by debt-oriented schemes which have 29.1% of proportionate share. The liquid/money market funds are at the third position with 24.4% shares and ETFs and Funds of Funds have the remaining share.
The composition of Investors in Total Assets
There are two types of investors invest in mutual funds – individual investors and institutional investors. According to the AMFI’s report, the individual investors are the major shareholders of the total assets of the mutual fund industry. As in December 2018, the individual investors have a 53.6% share of the total asset while the institutional investors hold the 46.4% share. In December 2017, the individual investors were holding the 50.6% share of the total assets and 49.4% share was held by the institutional investors.
Investors Composition in Mutual Funds Schemes
As given in the report, the composition of investors – individual and institutional – can be seen scheme wise. In the debt-oriented schemes, 54% of the total asset is held by the institutional investors, while 46% of the total share is held by the individual investors. In equity-oriented schemes, the major shareholders are individual investors with 87% of the total asset while the institutional investors hold 13% of the total asset. The liquid/money market funds have just opposite case. Here, 87% stakes are held by institutional while 13% stakes are held by individual investors. In ETFs & FOFs, 93% of the total asset is held by the institutional investors, while 7% of the total share is held by the individual investors.
Investor’s Holdings of Mutual Funds
According to the report, the institutional investors have major holdings in the liquid/money market funds which are followed by debt-oriented schemes. Out of their mutual fund holdings, they invest 46% of their asset in equity-oriented mutual funds and 34% in debt-oriented mutual funds. On the other hand, individual investors have major holdings in equity-oriented mutual funds where they invest 68% of their total assets. This holding is followed by the debt-oriented mutual funds where individual investors invest 25% of their totals assets.
Growth in the Assets
The AMFI’s report shows that the assets held by the individual investors in December 2018 are Rs 12.91 lakh crore which was Rs 11.44 lakh crore in December 2017. It increased with an absolute growth rate of 0.1% in a year. The value of the institutional assets in December 2018 is Rs 11.17 lakh crore which was Rs 11.16 lakh crore in December 2017.
(Mutual Funds Industry Trends.)
Acknowledgement: This post is based on the data provided in AMFI’s report.
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