Mumbai
The Indian mutual fund industry has experienced a significant surge, with assets under management (AUM) reaching ₹66.7 lakh crore in 2024. This year, the industry is also poised to surpass the milestone of 50 million unique investors.
This impressive growth is attributed to the continued strength of the equity market and a rise in new fund offerings (NFOs). Industry experts predict that the investor base could hit 100 million by 2030, with total AUM expected to reach ₹100 trillion. Factors driving this growth include market resilience, robust retail participation, favorable conditions, and varied investment strategies.
In August, the net AUM of the Indian mutual fund sector crossed ₹65 lakh crore for the first time, with equity funds attracting inflows of ₹38,239 crore, reflecting a 3.03% increase from July’s ₹37,113 crore. Systematic Investment Plans (SIPs) also reached new heights, with monthly contributions rising to ₹23,547 crore in August, up from ₹23,332 crore the previous month.
Interestingly, investors from smaller cities are increasingly embracing mutual funds, with their share rising significantly over the last four years. While Mumbai and Delhi account for 39% of investors as of June 2024, other cities have consistently contributed over 30% of investors since March 2021, according to a Franklin Templeton report.
Experts emphasize that mutual fund inflows are vital for liquidity in equity markets, as record SIP collections help mitigate selling pressure. SIPs are growing at about 1% monthly, indicating a healthy trend for the industry’s long-term growth and disciplined equity allocation for investors.
