Mutual Funds: Equity schemes rule the roost with nearly 60% of overall industry assets, shows AMFI’s June data

It has been a few days since the mutual fund industry body Association of Mutual Funds of India (AMFI) released the latest data for June wherein it was concluded that the total assets spiked from ₹44.82 trillion in June 2023 to ₹61.33 trillion in June 2024, reflecting 36.83 percent increase in assets.

However, it is interesting to note that the share of equity-oriented schemes touched almost 60 percent – 59.6 percent to be precise – of the industry assets in June 2024. The corresponding data for June 2023 is 51.3 percent.

Meanwhile, the share of debt-focused mutual fund schemes is 15.1 percent of industry assets, lower than 19.8 percent a year ago.

It is noteworthy that the ETF market share is the same i.e., 12.8 percent in June 2024 and June 2024.

Individual vs institutional

As one would expect mutual funds are more popular among individual investors, who now hold a relatively higher share oof industry assets i.e., 61.1 percent in June 2024 compared with 57.3 percent in June 2023.

Conversely, institutional investors account for 38.9 percent of assets of which corporations are 95 percent while the remaining are institutions and banks.

Investors’ holdings

Individual investors primarily own equity-oriented schemes while institutions hold liquid, debt-oriented schemes and ETFs, FoFs.

A vast majority of assets i.e., 85 percent of individual investors are held in equity-oriented schemes, whereas 53 percent of institutions assets are held in liquid / money market schemes and debt-oriented schemes.

Retail investors

Another interesting data point which shows the growing interest of individual investors is this: Value of assets held by individual investors in mutual funds jumped by 45.94 percent i.e., from ₹25.67 lakh crore in June 2023 to ₹37.47 lakh crore in June 2024.

At the same time, the value of institutional assets rose from ₹19.15 lakh crore in June 2023 to ₹23.87 lakh crore in June 2024, a jump of 24.62 percent.

Besides, inflows into mutual fund systematic investment plans (SIPs) hit an all-time high of ₹21,262.22 crore in June 2024