Retail investors' interest in MFs growing: ICRA Analytics

Rising awareness and growing interest among retail investors in mutual funds (MF) have led to a doubling of the number of folios in the last five years, according to leading research firm ICRA Analytics. The total number of MF portfolios, as of March 2024, stood at 17.79 lakh crore, up from 8.97 lakh crore in March 2020.

ICRA Analytics said retail investors are showing greater interest in investing in equities and bonds through the MF route.

The firm said that according to data from the Association of Mutual Funds in India, retail investors account for 91.3 per cent of the MF folios, while high net worth individuals (HNIs) constitute around eight per cent and institutional investors at less than one per cent.

ICRA Analytics said that equity-oriented funds top the list of folios at 68.7 per cent, exchange-traded funds (ETFs) at 11.7 per cent, while hybrid schemes comprise 7.7 per cent.

The industry's assets under management (AUM), as of March 2024, has more than doubled in the last five years at Rs 53.40 lakh crore, as against Rs 22.26 lakh crore in March 2020.

Inflows into equity-oriented schemes grew nearly ten per cent at Rs 22,633 crore, up from Rs 20,534 crore a year back, the research firm said.

On year-on-year basis, the total number of folios has increased by nearly 22 per cent from 14.57 lakh crore in March 2023.