Corporates, HNIs dominate mutual fund AUM, says Crisil

Rating agency Crisil today said 56.38 per cent of retail assets under management (AUM) stayed in equity mutual funds for over two years in the September quarter, lower than 57.80 per cent in the June quarter.
Tenure-wise analysis of AUM across investor types and categories showed that 56.38 per cent of retail AUM stayed in equity mutual funds for more than two years in the September quarter, slightly lower than 57.80 per cent in the April-June period, it said in a statement here.
Of the Rs 2.12 lakh crore of retail investments in equity-oriented MFs, Rs 1.20 lakh crore was held for over 24 months. Around 22 per cent of HNIs, by AUM, stayed invested in equity mutual funds for more than two years, lower than 25 per cent in the previous quarter, the rating outfit said.

Corporates continued to dominate mutual fund AUM with 47 per cent share in September 2015 same as in June 2015. The HNI segment was the second biggest contributor with 29 per cent share. The retail segment's share in total mutual fund AUM rose to 22 per cent in the last quarter from 21 per cent in the June quarter.
Continuing their uptrend for the fourth consecutive quarter, retail mutual fund folios rose in the September quarter by a record 15.11 lakh to 4.24 crore.
From December 2014, the Association of Mutual Fund in India (AMFI) has started disclosing data on a quarterly basis instead of half-yearly earlier. Overall, folios rose by 16.66 lakh (3.9%) in the September quarter.

Retail equity fund folios, too, rose for the fourth consecutive quarter since September 2014 as investors remained buoyant on equity mutual funds despite ongoing volatility in the underlying asset class, Crisil said.

Around 11.5 lakh equity folios were added in the last quarter compared with 8.17 lakh in the preceding quarter, taking the total to 3.28 crore.
The high net worth individual segment posted rise of 1.13 lakh folios to a record 16.33 lakh folios led by both equity (up 0.77 lakh folios) and debt (up 0.20 lakh folios).
Debt fund folios, which comprise 16 per cent of the total count, registered the biggest quarterly rise of 2.71 lakh since December 2014 to 71.36 lakh folios as of September 2015. Within debt funds, retail folios rose 2.47 lakh compared with 32,578 retail folios in the previous quarter, it said.

Gilts funds, in which 585 folios were closed in the retail and HNI segments in the June quarter, rebounded with the addition of 3,050 folios on hopes of a rate cut by RBI. The central bank lowered its key repo rate by 50 basis points to 6.75 per cent on September 29.