The equity AUM of local funds captures all equity related exposure in equity funds, balance funds, index, and ETFs. The year-on-year increase in the share of the local funds was the highest among all the categories of institutional investors.
The total equity AUM of institutional investors was Rs 163 lakh crore ($2 trillion) at the end of December, accounting for nearly half of the total market capitalization of India. With a record inflow in equity funds and eight years of consistent gain in the benchmark indices, the equity AUM of the local funds rose by 40% year-on-year to Rs 32.2 lakh crore in December while total institutional equity AUM grew 27%.
Local funds are the second largest institutional equity AUM contributors after foreign portfolio investors (FPIs) whose share dropped by seven basis points year-on-year to 37.4%. The ratio of MF and FPI equity AUMs rose to a record 0.52 in December compared with 0.47 a year ago. In the last five years, the AUM of domestic funds has tripled from Rs 10 lakh crore in December 2018 implying an annual growth of 26% while the AUM total institutional investors grew by 20%.
