Where Do Retail Investors and HNIs Invest? Mutual Fund Investment Trends - September 2025

According to AMFI data as of September 2025, mutual fund investments show a clear distinction in preferences between retail investors and high-net-worth individuals (HNIs). These groups emphasise different schemes, based on their asset allocation and folio holdings. 

Retail Investors Prefer ELSS and Small-Cap Funds 

Retail investors held 84.07% of the total AUM in ELSS funds and 65.20% in small-cap schemes. Their folio share was also high in these categories, with 96.08% in ELSS and 95.66% in small-cap funds. Mid-cap funds saw 57.71% retail AUM participation.  

Retail allocation was relatively lower in dividend yield (33.39%) and sectoral/thematic funds (38.41%). 

HNIs Allocate More Towards Sectoral and Dividend Yield Funds 

HNIs showed higher involvement in dividend yield and sectoral/thematic funds, with AUM contributions of 58.09% and 50.02%, respectively.  

ELSS had the lowest HNI share at 13.74%. Focused funds attracted 45.59% AUM from HNIs, and 10.74% of their folios also belonged to HNIs. The highest HNI folio share was seen in dividend yield funds at 17.09%. 

Hybrid Fund Preferences Split Between Segments 

In hybrid categories, retail investors showed strong interest in aggressive/balanced hybrid funds (25.92% AUM, 78% folios) and multi-asset allocation funds (21.05% AUM, 77.81% folios). 

Conversely, arbitrage funds had a minimal retail share with only 1.19% of AUM. HNIs invested heavily in equity savings (71.87%), balanced advantage (71.65%), and multi-asset allocation schemes (69.69%). 

Read More: Best Equity Mutual Funds in January 2026 Based on 5-Year CAGR! 

Passive Fund Choices Vary with Investment Size 

Retail investors opted for overseas FoFs (28.30% AUM) and index funds (23.15%). In folio terms, gold ETFs (96.54%) and index funds (94.79%) had maximum retail participation.  

HNIs held 53.74% AUM in overseas FoFs and 39.16% in index funds, but lower folio dominance in gold ETFs at only 3.23%. 

Conclusion 

Retail investors and HNIs display differing mutual fund preferences. While retail investors rely heavily on ELSS, small-cap, and mid-cap funds, HNIs favour dividend yield, sectoral, focused, and hybrid options, reflecting varied investment goals and risk appetites. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.