In its study on the mutual fund industry, ICRA has observed that the industry is on a rapid growth spurt and estimated that the industry will reach Rs.20 lakh crore AUM by the end of this calendar year.
In fact, the study said that the industry had already reached Rs.18 lakh crore in February 2017. This is a 42% expansion from Rs 12.90 lakh crore on February 2016.
The study has estimated that equity funds will drive this growth.
In February 2017, the assets of equity funds (including ELSS) crossed the all-important milestone of Rs. 5 lakh crore for the first time. The equity AUM grew 46.6% over last year in February 2017 and reached Rs. 5.2 lakh crore at the end of February. In April-February, total inflow in this category was Rs.62,151 crore.
The study reveals that in the last 12 months, assets from B15 towns have grown by 44% due to investor- friendly initiatives by regulators and in investor awareness campaigns by AMCs.
In February 2017, B15 assets grew by Rs.10,316 crore and stood at Rs.3.07 lakh crore compared to Rs.2.13 lakh crore in February 2016. Currently, B15 accounts for 16.7% of the total assets of the MF industry and the share of direct plans in B15 towns is only 23.4% against 46.2% in T15 cities, says the report.
