New Delhi, March 1
The mutual fund industry has seen significant growth in assets under management (AUM) -- from Rs 5.89 lakh crore in May 2008 to Rs 53.4 lakh crore in March 2024, a report showed on Saturday.
The steady increase in the share of mutual funds in Indian household savings, from 7.6 per cent in FY21 to 8.4 per cent in FY 23, is a testament to the industry’s growing relevance and the faith that investors have reposed in it, according to the report by the Association of Mutual Funds in India (AMFI), along with Crisil.
The mutual fund industry has played a pivotal role in empowering Indian households and investors to be a part of the country’s growth story, providing a platform for wealth creation and financial inclusion.
Despite ongoing volatility in the stock market, assets under management (AUM) for all open-ended schemes grew marginally by 0.49 per cent to reach Rs 66.98 lakh crore in January.
According to the AMFI report, mutual funds have made it possible for investors to benefit from a diversified portfolio managed by experienced professionals, even with a modest investment.
“The industry has seen a significant increase in digital transactions, with approximately 90 per cent of all mutual fund purchases being made through digital channels in FY 2024,” the report mentioned.
The regulator, SEBI, has played a crucial role in maintaining the integrity and stability of the mutual fund landscape.
According to Navneet Munot, Chairman of AMFI, the regulatory framework has not only helped in protecting investors but has also encouraged fund managers to adhere to high standards of accountability and operational excellence.
“In doing so, SEBI has reinforced the credibility of mutual funds as reliable investment vehicles, making them the preferred choice for investors looking to plan important life goals such as retirement, housing, children’s education and long-term wealth creation,” he maintained.
Retail investors have played a pivotal role in providing stability to capital markets and driving the mutual fund industry’s growth.
“Women investors now account for over 25 per cent of individual investors and hold 33 per cent of the total AUM,” the report noted.