Kolkata: There has been a phenomenal rise in the way younger investors in India have reposed their faith in equity mutual fund schemes in the past five years, data presented by AMFI (Association of Mutual Funds in India) in its annual report of FY25. While this is not surprising since a spectacular bull run triggered big time investments in the equity mutual fund schemes, the rise in degree of faith in equity funds has been quite significant.
In the data of FY25, investors who are aged less than 25 years put 47% of their investments in equity funds, 11% in hybrid funds, 21% in debt funds and 17% in solution oriented funds, AMFI has revealed. Flash back to FY20 and the share of investement in the same age group was as follows — 41% in equity funds, 9% in hybrid funds, 33% in debt funds and 16% in solution oriented funds. The bottomline is clear: investment in equity funds has grown at the expense of debt funds.
Trust in equity higher in these age groups
The rush to invest in equity mutual fund schemes rose in a far more pronouned way in the age group of 25-44 years between FY20 and FY25 compared to the under 25 years group, AMFI has stated. Consider this. In FY20, 36% of the investments of the 25-44 years group went to equity, 11% in hybrid, 49% in debt and 2% in solution oriented schemes. In FY25, the share of investments in equity funds shot up to 60%. Hybrid funds accounted for 13% and debt funds accounted for 18%. The rise is equity investments is matched by a shrinkage in debt funds for this age group.
Middle aged investors most bullish on equity schemes
If you move to the 45-58 year age group, it has put in the maximum share of their money in equity schemes — 66% in FY25 (49% in FY20). The comparable shares for other categories are 11% in hybrid funds in FY25 (10% in FY20), 16% in debt funds in FY25 (39% in FY20). In this age group too, investment in debt funds shrunk significantly. In an bizarre piece of statistic, it can be seen that investors below 25 and above 59 years have put their same share of money in debt schemes in the last financial year — 21%. It was 46% for the 59+ age group in FY20.
Rise in MF AUM
AMFI data showed that AUM of the mutual fund industry soared 23% to reach Rs 65.74 lakh crore in FY25. This was due to robust net inflows and mark-to-market gains in the midst of ebullient equity and debt markets. The AUM of the mutual fund industry stood at Rs 53.40 lakh crore at the end of FY24. “The asset base expanded partly owing to mark-to-market (MTM) gains, spurred by equity markets clocking positive returns, as reflected in the Nifty 50 TRI and Sensex TRI rising 6 per cent and 5.9 per cent, respectively. Debt markets also contributed positively through MTM gains, supported by favourable yield movements,” said AMFI in its annual report.
The past five years, which witnessed one of the most remarkable bull runs in the stock market in India, has also witnessed a big rise in investments in equity schemes by the younger investors in the country, AMFI figures have shown. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
