Mutual Funds: Total asset size spikes 40% in a year, individuals own lion’s share as equity schemes turn favourites | Mint

The total assets managed by the mutual fund industry jumped nearly 40 per cent in a year to ₹68.05 trillion in November 2024, a 39.59 per cent jump over November 2023, according to the latest data from the Association for Mutual Funds in India (AMFI).

Interestingly, the increase is primarily attributed to investment by retail investors, that too in equity schemes.

Meanwhile, contributions via systematic investment plans (SIPs) rose from ₹17,073 crore in November 2023 to ₹25,320 crore in November 2024, reflecting a jump of 48 per cent in the past one year.

Equity vs debt

The data further reveals that the proportionate share of equity-oriented schemes was 59.7 per cent of the industry assets in November 2024, up from 54.9 per cent in November 2023. On the contrary, the proportionate share of debt-oriented schemes fell from 18.5 per cent to 14.8 per cent.

What is even more striking is that equity-oriented schemes derive 88 per cent of their assets from individual investors (retail + HNIs). At the same time, institutional investors dominate liquid and money market schemes (88 per cent), debt-oriented schemes (64 per cent) and ETFs FOFs (88 per cent).

“This year saw the launch of 205 New Fund Offers (NFOs), raising close to ₹1 lakh crore, which underscores the enthusiasm for equities. While this shift demonstrates rising investor confidence in the equity market, it also signals the need for greater awareness about disciplined, long-term investing, rather than relying solely on past performance,” says Rajani Tandale, Senior Vice President, Mutual Fund at 1 Finance.

Retail investors

Individual investors now hold a relatively higher share of industry assets — 60.8 per cent in November 2024 as compared to 59.2 per cent in November 2023.

The value of assets held by individual investors in mutual funds increased from ₹28.86 lakh crore in November 2023 to ₹41.40 lakh crore in November 2024, an increase of 43.47 per cent.

The value of institutional assets increased from ₹19.89 lakh crore in November 2023 to ₹26.64 lakh crore in November 2024, a 33.97 per cent increase.

The data further suggests that a whopping 87 per cent of individual investor assets are held in equity-oriented schemes whereas 53 per cent of institutional assets are held in liquid/money market schemes and debt-oriented schemes.

Meanwhile, institutional investors account for 39.2 per cent of the assets, of which corporates are 94 per cent. The remaining are Indian and foreign institutions and banks.