The mutual fund industry in India reached a new milestone as its total assets under management (AUM) surged to nearly Rs 45 lakh crore by the end of June. This record-breaking figure was driven by a strong performance in the stock market and robust inflows into equity schemes.
According to data released by industry trade body Amfi, the AUM of the mutual fund industry stood at Rs 44.8 lakh crore, a historic high. This achievement highlights investors’ growing confidence in the market and the popularity of mutual funds as an investment vehicle.
The consistent monthly contributions through the systematic investment plan (SIP) route, primarily into equity schemes, remained steady around the Rs 14,700 crore mark. This shows that investors continue to recognize the long-term benefits of investing in equity mutual funds.
While equity funds experienced strong inflows in June, it is worth noting that liquid funds faced outflows due to advance tax payments made during the month. However, industry experts believe that this is a temporary situation and expect liquidity to pick up in the coming months.
Akhil Chaturvedi, the Chief Business Officer of Motilal Oswal AMC, noted that small-cap schemes have been particularly popular among investors in the previous quarter and the current financial year. In June alone, small-cap schemes attracted a net inflow of nearly Rs 5,500 crore out of the total net inflows of Rs 8,637 crore in equity funds.
The rise in AUM can be attributed to the collective efforts of market participants, including asset management companies, distributors, and advisors who have been promoting the benefits of investing in mutual funds. Additionally, the positive market sentiment and favorable investment climate have also contributed to the growth of the industry.
The mutual fund industry plays a crucial role in channelizing savings and investments into the economy, thus driving economic growth. As more investors recognize the potential of mutual funds to generate wealth over the long term, the industry is likely to witness further expansion.
It is important to note that investing in mutual funds comes with certain risks, and investors should carefully analyze their investment goals and risk tolerance before making any investment decisions. Consulting with a financial advisor can help investors make informed choices based on their individual financial situations.
Overall, the mutual fund industry in India is experiencing significant growth, with AUM reaching new highs. The consistent inflows into equity schemes and the popularity of small-cap schemes reflect investors’ trust in the market and their appetite for wealth creation. However, it is crucial for investors to conduct thorough research and exercise caution while investing, considering their own financial goals and risk appetite.
