Retail Mutual Fund Assets Base Rises 9.3% in Jan ’23

The interest of retail investors in the Indian mutual fund industry has witnessed a spike with the value of assets held by them registering a rise of 9.3% to Rs 23.4 lakh crore (23.4 trillion) in January 2023.

The value of assets held by retail investors in mutual funds stood at Rs 21.40 lakh crore in January 2022, as per the data of the Association of Mutual Funds in India (AMFI) showed.

On the other hand, the value of institutional assets has witnessed a dip to Rs 17.42 lakh crore in January 2023. Earlier, this value was Rs 17.49 lakh crore in January 2022.

It is expected that the rise in asset base could be the result of advanced systematic investment plan (SIP) flows, which were hovering at Rs 13,000 crore. This is for the fourth time in a row in January 2023.

The data mentions that the flows through SIP rose to Rs 13,856 crore in January from Rs 13,573 crore in December 2022. This was the fourth consecutive month when SIP flows remained a notch higher than the Rs 13,000-crore mark.

The assets managed by the mutual fund industry showed an upward move to Rs 40.8 lakh crore in January 2023 from Rs 38.89 lakh crore in January 2022. This underlines a 4.93% rise in assets.

In addition, the share of retail investors in the industry assets has risen to 57.3% during the period under review compared to 55% in January 2022.

In the mutual funds industry, investments from institutional investors is 42.7% of the assets, out of this corporate are 96%. The other segment comprises Indian and foreign institutions and banks.

Individual investors mostly hold equity-oriented schemes while institutions hold liquid, debt-oriented schemes and exchange-traded funds (ETFs) and Fund of Funds (FoFs).

Primarily, at least 80% of individual investors hold equity-oriented schemes. On the other hand, about 59% of institutions hold liquid, money market schemes and debt-oriented schemes.

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