Last Updated on October 4, 2019 at 10:36 am
Interested to know which mutual funds retail investors prefer, how high Networth Individuals invest? Let us take a look at the Association of Mutual Funds in India – AMFIs AUM-Category / Age-Wise and Folio Data as on June 30th 2019. I had recently used this to find out how popular index investing is in India (see video below).
The AMFI uses four investor classifications: Corporates; Banks/FIs; FIIs; High Networth Individuals (HNIs); Retail; HNIs are those who can invest Rs. 2 lakh or more (I assume in one shot in any scheme, not just NFO). FI is an Indian Financial Institution, FIIs are Foreign Institutional Investors. This is the vision document of the industry to increase its foothold
The MF industry manages 24,25,040.35 Crores as on June 30th 2019 spread (unevenly) across 83,771,689 folios. Let us look at which categories are popular among each investor type as a percentage of this total AUM.
Let us begin with the share for each investor type. The main source of revenue for AMCs is from corporates and HNIs. Retails is significant but only third. MF penetration among Banks and FIs is surprisingly low!
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! 🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
| Investor Classification | Total AUM |
| Corporates | 39.79% |
| Banks/FIs | 1.93% |
| FIIs | 0.36% |
| High Networth Individuals* | 34.03% |
| Retail | 23.89% |
Corporates
Corporates prefer to park most of their money in liquid or overnight funds with almost an equal amount in other debt funds. Surprised to find 2% of the total AUM in hybrid funds!
| Category | Corporates |
| Liquid Fund/Money Market Fund/ Floater Fund | 14.96% |
| Remaining Income/ Debt Oriented Schemes | 14.05% |
| ETFs(other than Gold) | 5.41% |
| Growth/ Equity Oriented Schemes | 2.95% |
| Hybrid Schemes | 2.00% |
| Gilt Fund/ Gilt Fund with 10-year constant duration | 0.21% |
| Index Funds | 0.10% |
| Gold ETF | 0.09% |
| Fund of Funds investing Overseas | 0.02% |
| Solution-Oriented Schemes | 0.00% |
High Networth Individuals
The HNIs prefer longer duration debt funds, equity funds and hybrid funds! The shorter duration debt fund share is surprisingly low suggesting that they prefer other means for liquidity. Impressed that HNIs like Hyrbid funds.
| Scheme Category | High Networth Individuals |
| Remaining Income/ Debt Oriented Schemes | 10.90% |
| Growth/ Equity Oriented Schemes | 10.78% |
| Hybrid Schemes | 8.16% |
| Liquid Fund/Money Market Fund/ Floater Fund | 3.56% |
| ETFs(other than Gold) | 0.17% |
| Solution-Oriented Schemes | 0.16% |
| Gilt Fund/ Gilt Fund with 10-year constant duration | 0.11% |
| Index Funds | 0.07% |
| Gold ETF | 0.07% |
| Fund of Funds investing Overseas | 0.05% |
Mutual Fund Categories Preferences for Retail Investors
| Scheme Category | Retail |
| Growth/ Equity Oriented Schemes | 17.44% |
| Hybrid Schemes | 3.74% |
| Remaining Income/ Debt Oriented Schemes | 1.51% |
| Solution-Oriented Schemes | 0.53% |
| Liquid Fund/Money Market Fund/ Floater Fund | 0.44% |
| ETFs(other than Gold) | 0.07% |
| Index Funds | 0.07% |
| Gold ETF | 0.05% |
| Gilt Fund/ Gilt Fund with 10-year constant duration | 0.03% |
| Fund of Funds investing Overseas | 0.02% |
Observations
In the case of retail investors, there is a significant skew towards diversified equity funds. It is a shame that the hybrid share is quite poor. Even today the direct share of the retail AUM is only about 12% or so. So the choices here are primarily driven by sales guys with a projection of huge returns in the future (without this no one would buy!!)
The HNI direct share is twice that of retail. This could be a reason why HNIs prefer hybrid scheme a lot more. Also, the sale guys may be offering “lower” version so that the higher AUM is stickier.
How popular is index investing in India?
The full data reported category-wise is presented below.
Liquid Fund/Money Market Fund/ Floater Fund
| Investor Classification | AUM (Rs. Cr) | % to Total |
| Corporates | 362782.6 | 73.7 |
| Banks/FIs | 32269.5 | 6.56 |
| FIIs | 108.02 | 0.02 |
| High Networth Individuals | 86327.06 | 17.54 |
| Retail | 10773.05 | 2.19 |
| Total | 492260.2 | 100 |
| Investor Classification | No of Folios | % to Total |
| Corporates | 53111 | 2.64 |
| Banks/FIs | 1745 | 0.09 |
| FIIs | 659 | 0.03 |
| High Networth Individuals* | 376419 | 18.75 |
| Retail | 1576063 | 78.49 |
| Total | 2007997 | 100 |
Gilt Fund/ Gilt Fund with 10-year constant duration
| Investor Classification | AUM (Rs. Cr) | % to Total |
| Corporates | 5031.07 | 58.56 |
| Banks/FIs | 76.48 | 0.89 |
| FIIs | 176.92 | 2.06 |
| High Networth Individuals* | 2627.5 | 30.58 |
| Retail | 679.61 | 7.91 |
| Total | 8591.57 | 100 |
| Investor Classification | No of Folios | % to Total |
| Corporates | 2261 | 2.55 |
| Banks/FIs | 37 | 0.04 |
| FIIs | 8 | 0.01 |
| High Networth Individuals* | 10591 | 11.96 |
| Retail | 75685 | 85.44 |
| Total | 88582 | 100 |
Remaining Income/ Debt Oriented Schemes
| Investor Classification | AUM (Rs. Cr) | % to Total |
| Corporates | 340834.8 | 52.11 |
| Banks/FIs | 10425.02 | 1.59 |
| FIIs | 1930.15 | 0.3 |
| High Networth Individuals* | 264339.9 | 40.42 |
| Retail | 36511.63 | 5.58 |
| Total | 654041.5 | 100 |
| Investor Classification | No of Folios | % to Total |
| Corporates | 101474 | 2.29 |
| Banks/FIs | 2183 | 0.05 |
| FIIs | 41 | 0 |
| High Networth Individuals* | 1319173 | 29.71 |
| Retail | 3017018 | 67.95 |
| Total | 4439889 | 100 |
Growth/ Equity Oriented Schemes
| Investor Classification | AUM (Rs. Cr) | % to Total |
| Corporates | 71556.22 | 9.41 |
| Banks/FIs | 962.27 | 0.13 |
| FIIs | 3145.33 | 0.41 |
| High Networth Individuals* | 261523 | 34.4 |
| Retail | 423002.8 | 55.64 |
| Total | 760189.6 | 100 |
| Investor Classification | No of Folios | % to Total |
| Corporates | 193563 | 0.32 |
| Banks/FIs | 784 | 0 |
| FIIs | 555 | 0 |
| High Networth Individuals* | 3264403 | 5.38 |
| Retail | 57171840 | 94.29 |
| Total | 60631145 | 100 |
Hybrid Schemes
| Investor Classification | AUM (Rs. Cr) | % to Total |
| Corporates | 48539.8 | 14.31 |
| Banks/FIs | 233.17 | 0.07 |
| FIIs | 1741.51 | 0.51 |
| High Networth Individuals* | 197826.5 | 58.34 |
| Retail | 90750.73 | 26.76 |
| Total | 339091.7 | 100 |
| Investor Classification | No of Folios | % to Total |
| Corporates | 67736 | 0.71 |
| Banks/FIs | 172 | 0 |
| FIIs | 43 | 0 |
| High Networth Individuals* | 1512225 | 15.84 |
| Retail | 7965494 | 83.45 |
| Total | 9545670 | 100 |
Solution Oriented Schemes
| Investor Classification | AUM (Rs. Cr) | % to Total |
| Corporates | 33.32 | 0.2 |
| Banks/FIs | 0.01 | 0 |
| FIIs | 0 | 0 |
| High Networth Individuals* | 3944.42 | 23.48 |
| Retail | 12824.17 | 76.33 |
| Total | 16801.92 | 100 |
| Investor Classification | No of Folios | % to Total |
| Corporates | 129 | 0 |
| Banks/FIs | 1 | 0 |
| FIIs | 0 | 0 |
| High Networth Individuals* | 47261 | 0.88 |
| Retail | 5332658 | 99.12 |
| Total | 5380049 | 100 |
Index Funds
| Investor Classification | AUM (Rs. Cr) | % to Total |
| Corporates | 2377.27 | 41.57 |
| Banks/FIs | 2.7 | 0.05 |
| FIIs | 0 | 0 |
| High Networth Individuals* | 1752.27 | 30.64 |
| Retail | 1586.76 | 27.75 |
| Total | 5719 | 100 |
| Investor Classification | No of Folios | % to Total |
| Corporates | 2101 | 0.67 |
| Banks/FIs | 3 | 0 |
| FIIs | 0 | 0 |
| High Networth Individuals* | 20132 | 6.41 |
| Retail | 291755 | 92.92 |
| Total | 313991 | 100 |
Gold ETF
| Investor Classification | AUM (Rs. Cr) | % to Total |
| Corporates | 2103.42 | 42.66 |
| Banks/FIs | 7.6 | 0.15 |
| FIIs | 0 | 0 |
| High Networth Individuals* | 1688.49 | 34.25 |
| Retail | 1130.92 | 22.94 |
| Total | 4930.43 | 100 |
| Investor Classification | No of Folios | % to Total |
| Corporates | 2931 | 0.89 |
| Banks/FIs | 12 | 0 |
| FIIs | 0 | 0 |
| High Networth Individuals* | 20070 | 6.13 |
| Retail | 304502 | 92.97 |
| Total | 327515 | 100 |
ETFs(other than Gold)
| Investor Classification | AUM (Rs. Cr) | % to Total |
| Corporates | 131258 | 92.83 |
| Banks/FIs | 2771.48 | 1.96 |
| FIIs | 1628.05 | 1.15 |
| High Networth Individuals* | 4105.35 | 2.9 |
| Retail | 1626.49 | 1.15 |
| Total | 141389.4 | 100 |
| Investor Classification | No of Folios | % to Total |
| Corporates | 11627 | 1.28 |
| Banks/FIs | 51 | 0.01 |
| FIIs | 11 | 0 |
| High Networth Individuals* | 41555 | 4.57 |
| Retail | 856053 | 94.14 |
| Total | 909297 | 100 |
Fund of Funds investing Overseas
| Investor Classification | AUM (Rs. Cr) | % to Total |
| Corporates | 414.15 | 20.45 |
| Banks/FIs | 0 | 0 |
| FIIs | 0 | 0 |
| High Networth Individuals* | 1101.63 | 54.4 |
| Retail | 509.27 | 25.15 |
| Total | 2025.05 | 100 |
| Investor Classification | No of Folios | % to Total |
| Corporates | 788 | 0.62 |
| Banks/FIs | 0 | 0 |
| FIIs | 0 | 0 |
| High Networth Individuals* | 9045 | 7.09 |
| Retail | 117721 | 92.29 |
| Total | 127554 | 100 |
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)