Retail asset in MFs rise to 26%

Written by Markets Bureau | Mumbai | Updated: Apr 24 2010, 06:56am hrs
Share of retail investors in the mutual fund industry has increased in the last six months, according to a recently released data of Association of Mutual Funds. The retail asset constituted 26% of overall assets under management(AUM), which is about over Rs 7.4 lakh crore as on March 2010. It improved roughly by 2% over the last six months. Market participants say that buoyant equity markets and streak of measures from mutual funds housesto improve retail base of investorshave had its effect.

According to the Amfi data, market share of retail investors has increased in liquid schemes, debt schemes, equity schemes and gold ETFs as on March 2010 compared to that of September, 2009.

In equity schemes, retail investors share has surged to 66.7% against 65.6% in September last year an increase of 1.06%. However retail investors also reduced exposure in balanced and gilt schemes during the same period. Sebi over the past few years has been admonishing fund houses to go retail and penetrate newer markets.

Interestingly, banks and financial institutions have hugely decreased their holding from the mutual funds. The month of March is usually witnesses huge redemption from banks and FIs, which could have reduced their overall market share.