Year-End Review: Mutual Fund Sector's AUM Soars Over 500% in a Decade
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New Delhi, Dec 31 (NationPress) In the past decade, the Indian mutual fund industry's assets under management (AUM) have experienced remarkable expansion, surging by an astonishing 524% to 68.08 lakh crore in November 2024 from 10.9 lakh crore in November 2014.
Notably, rural and semi-urban regions now contribute to 50% of all SIP accounts nationwide. Furthermore, the growth of AUM in B-30 (Beyond 30 cities) has outstripped that of the top 30 cities during this period.
As reported by the Association of Mutual Funds in India (AMFI), the total AUM across all mutual fund schemes rose by more than Rs 17 lakh crore this year.
In the last four years, the AUM of the mutual fund sector has surged by over Rs 37 lakh crore.
This year alone, the AUM grew by Rs 11 lakh crore, following increases of Rs 2.65 lakh crore in 2022 and approximately Rs 7 lakh crore in 2021.
Moreover, the total number of folios reached 22.02 crore by the end of November 2024.
The rise in demat accounts has also been significant over the last decade.
As of August 2024, over 17.10 crore demat accounts had been opened, a substantial increase from 2.3 crore in FY14, representing a remarkable jump of over 650% during this timeframe.
Since 2021, an average of 3 crore new demat accounts have been added each year.
According to SBI Research, "India is witnessing around 30 million new demat accounts being opened annually since 2021, with nearly one in four being women investors, highlighting the growing trend of utilizing capital markets for saving financialization."
Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser at SBI, mentioned, "This year, the number of new demat accounts is expected to exceed 40 million," adding that women's participation has risen above the national average in FY25 compared to FY22.
Over the past decade, funds raised by Indian companies through capital markets have increased more than tenfold, from Rs 12,068 crore in FY14 to Rs 1.21 lakh crore in FY25 (up to October).
In FY25 (up to October), a total of Rs 1.21 lakh crore was raised from equity markets through 302 issues.
The NSE market capitalization has grown over six times to Rs 441 lakh crore in FY25 (so far) compared to FY14.
Consequently, the average trade size in the equity cash segment has risen from Rs 19,460 in FY14 to Rs 30,742 in FY25 (so far), as indicated by the SBI Research report.
