The assets under management (AUM) of the nation’s mutual fund industry reached a record high of Rs 66.7 lakh crore in 2024, and this year it is expected to surpass 50 million unique investors.
The tremendous growth is projected due to continuing buoyancy in the equity market and a surge in new fund offers (NFOs).
Industry analysts predict that by 2030, there will be 100 million investors with Rs 100 trillion in total AUM. The market’s stability, robust retail involvement, advantageous market circumstances, and variety of investment options will all contribute to this boom.
Systematic investment plans (SIPs) saw new highs in August as monthly contributions through SIPs increased to Rs 23,547 crore from Rs 23,332 crore in July.
The growth is a result of smaller-city Indian investors who are adopting mutual funds at a rate never seen before. Over the past four years, the proportion of these investors in cities outside of the top 15 has increased dramatically.
According to a Franklin Templeton research, other cities have consistently contributed more than 30% of investors since March 2021, even if Mumbai and Delhi still account for the largest percentage of investors (39% as of June 2024).
Experts claim that because record SIP collecting is absorbing any selling pressure, mutual fund inflows are a major source of liquidity for the equities markets.
SIPs are still growing at a rate of roughly 1% each month, which is excellent for the industry’s long-term growth and for investors looking to raise their equity allocation in a methodical manner.
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