Share of individual assets dips in MFs as investors eye traditional mode

Industry participants say apart from market volatility, concern over incomes is a bigger worry for investors

The mutual fund (MF) industry is seeing a dip in the share of individual investor assets, with market volatility and overall economic uncertainty taking a toll on investor sentiment.  

As on May 31, 2020, the share of individual investor assets in the industry stood at 52 per cent, which is 400 basis points (bps) lower than the levels seen at the end of the previous calendar year.

While correction in equity markets has contributed to the erosion of individual asset base (as these typically invest in equity schemes), slowdown in investor flows and redemptions has also weighed onto the asset base.