In the last two to three years there has been an increase in the participation of retail investors as it has been confirmed by the Retail Assets Under Management (AUM) data. The data shows that the retail AUM for the industry jumped from Rs2,62,710 crores in March 2016 to Rs3,82,393 crores in March 2017 which is a 46% increase. Most part of the growth has been credited to a good performance of equity and debt markets although it can also be attributed to fresh inflows. Last year Sensex also performed well and rose to 17% increasing the income tax to a return of 9.5% for the same period.
The financial year 2016-17 saw a rise in the industry AUM by 42 from Rs12.32 lakh crores in March 2016 to Rs17.54 lakh crores in March 2017. The retail AUM, on the other hand, rose from Rs1,96,833 crore to Rs3,82,393 crores which is a 46% increase.
The growth, however, isn’t linear all across mutual funds as retail-focused fund house saw higher growth than the rest. The top 10 players of the industry made up for the 86.7% of the total growth in retail AUM, the best of which was accounted by DSP Blackrock MF.
With a jump of 71.5%, DSP Blackrock Mutual Fund rose from Rs9,090 to Rs15,589 in a year. The second company in the rank was Birla Sun Life Mutual Fund whose Retail Assets Under Management rose from Rs17,902 to Rs28,405 which is a rise of 54.6% over the course of one year.
Reliance Mutual Fund, on the other hand, was technically the biggest gainer as its AUM rose by 54.6% from Rs34,050 to Rs52,656 crore which is a rise of Rs18,606 crore. HDFC Mutual Fund still continues to be the biggest player in the fund business with an average AUM of Rs54,408 crore this year, followed by Reliance Mutual Fund, UTI Mutual Fund and ICICI Prudential Mutual Fund coming in at number 2,3 and 4 respectively.
Last three years have seen retail investors entering the mutual funds in a big way. It is a sign of what is to come in the future as companies try to get into every profitable business possible irrespective of the roots of the companies.