The individual investor category includes retail and high net worth (HNI) investors. As per data released by AMFI, the share of individual investor assets in the mutual fund industry increased by 3.3% in June 2021 to 53.8%, compared to a year ago.
The value of assets held by individual investors in mutual funds increased by 39.16% from Rs.13.18 Lakh Crores in June 2020 to Rs. 18.34 Lakh Crores in June 2021. According to the scheme types, individual investors contribute the maximum to equity-orientated schemes at 88%.
The share of institutional investors’ assets in the mutual fund industry decreased to 46.2% in June 2021 from 49.5% in June 2020. Institutional investors contribute the greatest to debt-orientated schemes, liquid/money market, exchange-traded funds (ETFs), and fund of funds (FoFs) at 62%, 85%, 90% respectively.
Individual investors hold 72% of their assets in equity-oriented schemes while institutions hold 69% of their assets in liquid/money market schemes and debt-oriented schemes.
The increased exposure of individual investors in equity-oriented schemes can also be attributed to the recent rally in the equity market.