Synopsis
The mutual fund sector in India has witnessed substantial AUM growth, increasing from Rs 5.89 lakh crore in May 2008 to Rs 53.4 lakh crore by March 2024. This growth reflects the rising popularity and trust in mutual funds among Indian investors, supported by digital transactions and regulatory backing.Key Takeaways
- Significant AUM growth: From Rs 5.89 lakh crore in May 2008 to Rs 53.4 lakh crore in March 2024.
- Increased household savings: Share of mutual funds in savings rose from 7.6% in FY21 to 8.4% in FY23.
- Digital transactions: 90% of mutual fund purchases in FY 2024 were made digitally.
- Women investors: Represent over 25% of individual investors and hold 33% of total AUM.
- Regulatory support: SEBI’s role in ensuring investor protection and industry credibility.
New Delhi, March 1 (NationPress) The mutual fund sector has experienced remarkable expansion in assets under management (AUM) -- surging from Rs 5.89 lakh crore in May 2008 to Rs 53.4 lakh crore in March 2024, according to a report released on Saturday.
The continuous rise in the share of mutual funds in Indian household savings, increasing from 7.6 percent in FY21 to 8.4 percent in FY23, underscores the industry's growing significance and the trust investors have placed in it, as stated in the report by the Association of Mutual Funds in India (AMFI), in collaboration with Crisil.
The mutual fund sector has been instrumental in enabling Indian households and investors to participate in the nation’s growth narrative, offering a platform for wealth creation and financial inclusion.
Despite the persistent volatility in the stock market, assets under management (AUM) for all open-ended schemes saw a slight increase of 0.49 percent, reaching Rs 66.98 lakh crore in January.
As per the AMFI report, mutual funds have allowed investors to gain from a diversified portfolio managed by skilled professionals, even with a modest investment.
“The sector has witnessed a considerable rise in digital transactions, with around 90 percent of all mutual fund purchases being conducted through digital platforms in FY 2024,” the report highlighted.
The regulator, SEBI, has been vital in upholding the integrity and stability of the mutual fund environment.
Navneet Munot, Chairman of AMFI, remarked that the regulatory framework has not only safeguarded investors but has also motivated fund managers to maintain high standards of accountability and operational excellence.
“In this way, SEBI has bolstered the credibility of mutual funds as trustworthy investment vehicles, making them the preferred option for investors aiming to fulfill significant life objectives such as retirement, home buying, children’s education, and long-term wealth accumulation,” he stated.
Retail investors have been crucial in providing stability to capital markets and fueling the growth of the mutual fund industry.
“Women investors now make up over 25 percent of individual investors and command 33 percent of the total AUM,” the report pointed out.
