New Delhi : A very good news has come regarding India's mutual fund industry. It is being told that like the year 2023, this industry has maintained the pace of its growth rate by performing brilliantly in the year 2024 also and due to this, a significant growth of Rs 17 lakh crore has been achieved. The reason for this growth is due to rapidly growing stock markets, strong economic growth rate and increasing participation of investors. Experts are predicting that a similar growth can be achieved in the year 2025 also.
Kaustubh Belapurkar, Director-Manager Research, Morningstar Investment Research India, has said that the mutual fund industry is expected to continue growing assets at a healthy pace in the year 2025. With increasing penetration among retail investors, inflows into equity funds, especially through systematic investment plans i.e. SIPs, are likely to remain strong.
SIP popularity increased
According to data from the Association of Mutual Fund Industry (Amfi), the year 2024 saw a substantial net inflow of Rs 9.14 lakh crore, with a significant increase in the number of investors by 5.6 crore. SIP grew in popularity which alone contributed Rs 2.4 lakh crore. With this investment, the assets under management or AUM of the industry increased to an all-time high of Rs 68 lakh crore by the end of November, which represents a growth of 33 percent as compared to Rs 50.78 lakh crore recorded at the end of 2023.
increasing financial awareness
Ganesh Mohan, Chief Executive Officer, Bajaj Finserv AMC, said that the growing trend of financialization has led to a significant increase in participation in stock markets and mutual funds, as reflected in the significant growth of AUM in the mutual fund industry. He said this shift is supported by the expansion of the Indian economy and increasing financial awareness among retail investors, who are looking for higher returns with lower costs and greater convenience.
investment of so many crores of rupees
A total investment of Rs 9.14 lakh crore was made in 45 companies of this industry by 2024 i.e. till November, whereas last year there was investment of more than Rs 2.74 lakh crore. This huge investment was possible due to the continued interest of investors in equity funds, arbitrage funds and index funds and exchange-traded funds i.e. ETFs.
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Akhil Chaturvedi, Chief Business Officer (CBO), Motilal Oswal AMC, has said that structural changes in savings patterns have made investing in equity funds through SIPs a natural form of investment for leading Indian investors. At the same time, investment in gold also picked up with investors looking for safety amid economic uncertainties, geopolitical tensions and changes in taxation norms, with investments worth Rs 9,500 crore.
(with agency input)
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