Mutual Funds Folios Inch Towards 5-Crore Milestone: CRISIL

 

Edging towards the 5-crore milestone, Mutual funds added 12.61 lakh folios, up 2.65% sequentially, in the June quarter to take the tally to a record high of 4.89 crore, according to the data disclosed by the Association of Mutual Funds in India (AMFI).

Retail folios reach six-year high, equity funds still favourites

Retail folios, 95% of total mutual fund folios, grew for the seventh quarter on the trot. In the latest quarter, 11.42 lakh folios were added (against 17.05 lakh folios in the preceding quarter) to take the count to a six-year high of 4.65 crore.

Retail investors continued to pour money in equity-oriented funds (76% of the total retail portfolio) for the seventh consecutive quarter amid strength in the equity market (Nifty 50 gained 7.14% in the quarter). Equity-oriented funds added 5.81 lakh folios to reach 3.54 crore (Table 2), lower than the addition of 12.57 lakh folios in the preceding quarter.

Among other categories, balanced funds, with higher orientation towards equity, too continued to ride the equity wave. The category added 1.09 lakh retail folios in the June quarter to push the total to 24.47 lakh. Meanwhile, the liquid retail category added 1.92 lakh folios to touch a record high of 4.68 lakh. The debt category added 2.71 lakh retail folios in the latest quarter compared with 3.26 lakh added in the preceding quarter.

HNI folios cross 19 lakh

Folios held by high networth individuals (HNIs), or those investing Rs 5 lakh or more as defined by AMFI, crossed the 19 lakh mark. This segment added 1.05 lakh folios in the latest quarter (Table 3). HNIs preferred to invest mostly in equity, debt and balanced funds. Though equity funds dominated the segment with 49% share (9.31 lakh folios), debt fund folios have increased in the past four quarters. The debt category added 0.42 lakh folios to stand at 7.34 lakh folios in the latest quarter against 0.26 lakh folios added in the previous quarter.

Corporates lead in AUM share

Corporates continued to dominate mutual fund assets under management (AUM) with 46% share in the June quarter (Table 4) against 47% in the March quarter. HNIs were the second biggest contributor with 28% share. The retail segment’s share was steady at 22%.

53% of retail equity AUM invested for over two years

Tenure-wise analysis of AUM across investor types and categories showed that 53.20% of retail AUM stayed in equity mutual funds for more than two years, higher than 52.94% in the preceding quarter. Of the Rs 2.45 lakh crore of retail investments in equity-oriented mutual funds, Rs 1.30 lakh crore was held for over 24 months.

In comparison, about 26.48% of HNI AUM stayed invested in equity mutual funds for more than two years, higher than 23.96% in the previous quarter.

ANNEXURE

Table 1 – Investor-wise composition of number of folios (in lakh)

Investor classification Jun 2016 Mar 2016 Absolute Change (bn) % Change % of total folios (Jun-2016) % of total folios (Mar-2016)
Retail 465.37 453.95 11.42 2.52 95% 95%
HNI * 19.09 18.04 1.05 5.82 4% 4%
Corporates 4.74 4.61 0.13 2.82 1% 1%
Others 0.04 0.03 0.01 33.33 0% 0%
Total 489.24 476.63 12.61 2.65 100% 100%

*Defined as individuals investing Rs 5 lakh and above

Others include banks/FIs and FIIs

Numbers rounded to two decimals

Source – AMFI

Table 2 – Composition of retail folios (in lakh)

Investor classification Jun 2016 Mar 2016 Absolute Change (bn) % Change % of total retail folios (Jun-2016) % of total retail folios (Mar-2016)
Equity oriented 354.38 348.57 5.81 1.67 76% 77%
Debt oriented 73.50 70.79 2.71 3.83 16% 16%
Balanced 24.47 23.38 1.09 4.66 5% 5%
Gold ETF 4.07 4.15 -0.08 -1.93 1% 1%
Liquid/money market 4.68 2.76 1.92 69.57 1% 1%
ETFs (other than gold) 2.65 2.60 0.05 1.92 1% 1%
Fund of funds investing Overseas 1.11 1.18 -0.07 -5.93 0% 0%
Gilt 0.51 0.51 0.00 0.00 0% 0%
Total 465.37 453.95 11.42 2.52 100% 100%

Numbers rounded to two decimals

Source – AMFI

Table 3 – Composition of HNI folios (in lakh)

Investor classification Jun 2016 Mar 2016 Absolute Change (bn) % Change % of total HNI folios (Jun-2016) % of total HNI folios
(Mar-2016)
Equity oriented 9.31 8.95 0.36 4.02 49% 50%
Debt oriented 7.34 6.91 0.43 6.22 38% 38%
Balanced 1.44 1.26 0.18 14.29 8% 7%
Gold ETF 0.08 0.08 0.00 0.00 0% 0%
Liquid/money market 0.71 0.63 0.08 12.70 4% 3%
ETFs (other than gold) 0.05 0.05 0.00 0.00 0% 0%
Fund of funds investing overseas 0.06 0.07 -0.01 -14.29 0% 0%
Gilt 0.09 0.09 0.00 0.00 0% 0%
Total 19.09 18.04 1.05 5.82 100% 100%

Numbers rounded to two decimals

Source – AMFI

Table 4 – Investor-wise composition of AUM (Rs crore)

Investor classification Jun 2016 Mar 2016 % Change % of total

AUM (Jun-16)

% of total

AUM (Mar-16)

Corporates 640,045 578,764 10.59 46 47
HNI * 387,740 352,780 9.91 28 29
Retail 306,089 275,776 10.99 22 22
Others 46,873 25,503 83.79 3 2
Total 1,380,747 1,232,824 12.00 100 100

*Defined as individuals investing Rs 5 lakh and above

Others include banks/FIs and FIIs

Numbers rounded to two decimals

Source: AMFI

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S Kapeed