Retail investors shy away from equities, while high net worth investors (HNIs) flock to it. If this is the impression you had, it isn't quite correct. A breakdown of the investments held by retail investors and HNIs in mutual funds reveals the opposite picture.
73 per cent of the retail money in mutual funds is parked in equity funds, while only 18 per cent of the HNI money is in this asset class. Over 70 per cent of the HNI money went into debt funds, while retail investors put only 18 per cent of their money into this safer avenue.
Of course, this skew may be true only of the money parked with the mutual fund industry. It is quite possible that HNIs allocate to direct investments in stocks. And it is also possible that retail investors prefer fixed deposits and small savings schemes to debt mutual funds, when it comes to their fixed income allocations.
Whatever the reason, one thing is certain. When equity fund NAVs soared in this post-election bull run, the aggressive retail investors in mutual funds made far more money than safety-loving HNIs.
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