In this week's issue, instead of an article, we have chosen to give you a glimpse of the industry and it's trend ending December 2015. We hope this analysis will help you get some valuable insights into the industry and its' composition.
Key Observations:
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Assets managed by the Indian mutual fund industry has grown from Rs. 10.51 trillion in December 2014 to Rs. 12.75 trillion in December 2015. That represents a 21.26% growth in assets during CY 2015.
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The Equity asset class registered an impressive growth of nearly 27% during CY2015 in AUM. The composition of Equity oriented schemes have risen during the year and it stood at 31.28% in December 2015.
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The Debt asset class registered a growth of 12.10% during the year but it's composition fell by nearly 3.68 in absolute terms in the overall assets.
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As a category, most impressive growth in assets was recorded by the Balanced schemes of over 72%, followed by Liquid Funds at over 30%.
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There are 45,853,274 folio accounts in the mutual fund industry as at December 2015, of which 99% is accounted for by individual investors.
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As per AMFI, individual investors now hold almost the same share of industry’s assets, i.e 45.9% in December 2015, compared with 46.0% in December 2014. Institutional investors account for 54.1% of the assets, of which corporates are dominant with 86.5% of assets. The rest are Indian and foreign institutions and banks.
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The institutional investors have a share of over 92% of assets in Liquid Funds but only 17% in Equity Schemes where individuals are the prominent asset holders. In Debt asset class too, the institutional clients dominate with 61% holding of assets.
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As per AMFI, 59 % of total individual investor assets are held in equity oriented schemes followed by Debt at over 36%. Individual investors held only 4% in liquid funds and less than 1% in ETFs & FoFs.
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Nearly 81% of the investor folio accounts are in Equity schemes while 17% folio accounts are in Debt funds. Liquid and money market funds account for less than 1% of folio accounts.
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Individual investors account for the most of the accounts, across fund types. In liquid and money market funds, they hold the least number, at about 92% of the total accounts. Instituional investors have only 0.8% of folios in Equity funds but have nearly 17% of assets.
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37% of the industry assets came directly. A large portion of the direct investments were in non-equity shemes where institutional investors dominate. Only 10% of retail investors assets are invested directly while 15% of HNI investor's assets (ticket size above Rs.5 lakh) were invested directly.
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Equity assets have a longer average holding period as compared to non-equity assets. 37% of equity assets have been held for periods greater than 24 months. Non-equity assets have been primarily held for periods less than a month (institutional assets in money market) or less than a year (other debt schemes).
Source: Information has been collated from AMFI & SEBI websites.
