MFs: Retail investors make their mark

Suresh P Iyengar Mumbai | Updated on April 14, 2018 Published on April 13, 2018

HDFC MF, Reliance MF lead in attracting the segment

Retail investors are holding the fort at mutual funds at a time when large corporates and high networth investors explore other investment options.

The market share of retail investors in overall assets under management of the mutual fund industry increased by three percentage points to 24 per cent in March, compared to 21 per cent logged in March 2017.

Mutual funds have been aggressively promoting systematic investment plans to attract retail investors, particularly from rural regions.

In the last one year, the share of corporates investment in mutual fund plunged by 5.4 percentage points to 48.6 per cent from 54 per cent while that of high networth investors moved up by 2.5 percentage points to 27.8 per cent from 25.3 per cent.



The overall industry AUM in the financial year ended March 31 was up 22 per cent at ₹21.36 lakh crore with the equity AUM increasing 48 per cent to ₹9.95 lakh crore (₹6.73 lakh crore).

Powered by systematic investment plans, retail investors’ AUM in mutual funds jumped 40 per cent at ₹5.35 lakh crore, while that of corporate and HNI investors were up 10 per cent and 34 per cent to ₹11.01 lakh crore and ₹6.30 lakh crore in FY19, respectively. Interestingly, HDFC Mutual Fund and Reliance Mutual Fund have topped the table in attracting maximum amount of retail investors’ money. HDFC Mutual Fund retail AUM was up 35 per cent at ₹73,365 crore while that of Reliance increased 39 per cent to ₹73,215 crore. The top six mutual funds accounted for 65 per cent of the industry’s retail AUM of ₹5.35 lakh crore. A major chunk of the retail investments have come into equity.

Sundeep Sikka, Executive Director & Chief Executive Officer, Reliance Nippon Life Asset Management, said last fiscal was a watershed moment for the entire industry with everything under the sun going right for mutual funds.

Mutual funds managed to deliver excellent returns and industry body Association of Mutual Funds of India came out with an excellent campaign ‘Mutual Fund Sahi Hai’, which broke the myth that mutual funds are for the well-heeled, he said.

“We always believed that retail investments are going to be sticky and stable. Well-informed corporates and HNI investments are more tactical and can drain out if there is a slight blip in the market,” he said.

In order to attract retail investors, Reliance had almost doubled its branch network to 300 across India and plans to further enhance it in the coming months.

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Published on April 13, 2018
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