Retail Investors' Average Ticket Size Declines To Rs 68,321 In FY23
Institutional investors had the highest ticket size at Rs 10.11 crore per account during the period under review.
Mutual funds as an investment vehicle have gained popularity among investors, although the average ticket size of retail investors has dropped by close to 3% to Rs 68,321 in March this year.
Retail investors had an average account size of Rs 70,199 as of March 2022, as compared to an average account size of Rs 68,321 at the end of March this year, according to data published by the Association of Mutual Funds in India.
On the other hand, institutional investors had the highest ticket size at Rs 10.11 crore per account during the period under review.
In terms of schemes, the average ticket size is relatively higher for liquid and debt-oriented schemes, which are primarily dominated by institutional investors.
The average ticket size for debt-oriented schemes was Rs 14.53 lakh, while the same was true for equity-oriented funds at Rs 1.54 lakh.
Generally, equity assets have a longer average holding period as compared to non-equity assets, with 45% of equity assets having been held for more than two years. Retail investors have held 56.5% of equity assets for over two years.
Also, there has been a consistent increase in investor accounts over the past few years due to increasing awareness about mutual funds, ease of transactions through digitization, and a sharp surge in equity markets.
The 42-player mutual fund industry added 1.62 crore folios in the financial year 2022–23. Since December 2014, there has been a steady increase in investor accounts, from 4.03 crore in March 2022 to 12.95 crore in March 2023 to finally 14.57 crore in March 2023.
Of the 14.57 million investors' accounts in the mutual fund industry, a total of 13.28 crore, or 91.1%, is accounted for by retail investors, followed by high-net-worth individuals (1.19 crore) and institutional investors (9.82 lakh).
Folios are numbers designated to individual investor accounts. An investor can have multiple folios.
Mutual fund inflows in the financial year 2022–23 rose around 7% to Rs 40.05 lakh crore as against Rs 37.70 lakh crore in the previous fiscal.
Of the total asset under management (AUM), retail AUM across equity, hybrid, and solution-oriented schemes stood at Rs 20.34 lakh crore, and the average AUM rose to Rs 20.45 lakh crore.
Going by the data, the contribution of small towns or B30 cities to the mutual fund industry's assets under management of over Rs 40 lakh crore stood at 17% as of March-end. Moreover, B30 (beyond the top 30 cities) tends towards equity assets, with 79% of the assets from these locations in equity schemes.
For the top 30 cities, equity-oriented schemes accounted for 46% of assets in March this year.
