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Mutual Funds

Indian Mutual Fund Industry Trends Report Card for May 2016



AMFI has started to disclose some additional data related to Mutual Fund investments from October, 2015. Today, we look at a snapshot of this data:

14.5 Lakh Crores in Mutual Funds Assets managed by the MF Industry has increased from Rs. 10.7 lakh crore in Oct-14 to Rs. 14.5 lakh crore in May-16 with Debt funds taking the most investment at 45 paise of every rupee invested.

Assets Growth Mutual Fund

Here is the chart clearing showing the domination of the Institutions while investing in Mutual Funds:

Assets managed by the Indian mutual fund industry

Institutions vs Individuals

  • Investments by Individuals account for a little over 45% of the total assets while the remaining 55% is constituted by Institutions
  • Investments from Individuals stands at Rs. 6.57 lakh crore for the month of May-16 compared to Rs. 5.63 lakh crore for the same month of previous year while investments from Institutions stands at Rs. 7.88 lakh crore for the month of May-16 compared to Rs. 6.62 lakh crore for the same month of previous year. That is Individuals are at least a year behind in terms of monetary investments in MF compared to Institutions.
  • Investment amount has increased every month except for Mar-16 in case of Institutions which witnessed a Rs. 0.1 lakh crore drop while for Individuals it was in the month of Feb-16 – a drop of Rs. 0.15 lakh crore.

Investor Type-wise Composition of Mutual Fund Asset

Scheme Wise Composition

While investments in liquid funds (Rs. 3.51 lakh crore assets) has only increased by 25% in May-16 compared to Oct-14 levels, ETF has commanded the highest increase at 62% though it has only Rs. 0.26 lakh crore worth assets followed by Equities at 48% (Rs. 4.45 lakh crore assets) and Debt Funds at 32% (Rs. 6.23 lakh crore assets). The EPFO investing through ETFs – started last year – would have made this change. 

While Individual investors prefer equity over debt for investments, Institutions have preferred Debt over liquid funds.

Debt + Liquid funds account for a little below 90% of the assets for Institutions while for Individual Equity + Debt funds account for a little over 95% of the assets.

Here is how the investment decisions were spread across the different schemes between Individuals and Institutions: Investors Across Categories

Here is the trend over the past 8 months:

Scheme wise Composition of Assets

B15/ T15 Mix

The top fifteen cities in India are marked as T15 for mutual fund investors – so if you’re in these cities, your investment is a T15 investment. B15 is everything else. 

  • Over 83% of the assets (Rs. 12.1 lakh crore) have come from Top 15 locations while the remaining 17% (Rs. 2.31 lakh crore) has come from non-T15 locations.
  • T15 investors clearly love investing in Non-Equity funds when compared to Equity Funds. Their average investment in Equity Funds has been 72% of the assets (Rs. 8 lakh crore) while the non-T15 investors prefer a perfect weightage between equities and non-equities. This can be explained by the fact that most institutions and corporates are in T-15 locations (big cities). 
  • The B15 location coverage is actually falling – for both individuals and institutions. Individual ownership in B15 has fallen about 0.5% in terms of marketshare since last year.

Assets from B15

Distributors vs Direct

  • 39% of the assets of the mutual fund industry came directly. This has been growing. 
  • 64% of liquid/ money market scheme assets where institutional investors dominate were direct, whereas 43% of debt oriented scheme assets were direct.
  • Proportion of direct investment in equity to the total assets held by individual investors was about 5.6% in May 2016.

Distributor vs Direct

Individual-Investor Assets Composition

  • 66% of the assets of Individual Investors are from T15 cities brought in by distributors.
  • Direct investments amount to 14% of individual assets i.e. 3% from B15 and 11% from T15.

Individual Investors scheme level composition

Source: AMFI -> Research & Information -> Other Data



Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.


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