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The MF industry is geared up to surpass Rs.100 lakh crore AUM mark by the turn of the decade, believes AMFI.
On achieving Rs.50 lakh crore AUM milestone, AMFI said that achieving the next target i.e. Rs.100 lakh crore AUM will require an increase in the investor base from 4.21 crore to 10 crore investors. AMFI said that it will focus on three areas to achieve this target – increasing distribution outreach, bringing in middle-income households to the MF fold through simplification/digitalisation and getting higher wallet share of household savings.
AMFI also extend congratulation to SEBI, MF distributors, AMCs and investors for achieving Rs.50 lakh crore milestone.
In a press release, Navneet Munot, Chairman of AMFI said, "We are elated to announce the achievement of Rs.50 lakh crore AUM, which is a testament to the trust that investors place in the Indian mutual fund industry. On this momentous achievement, we would like to thank and congratulate the regulator, SEBI, all our distributors and investment advisers, all MF industry stakeholders, our member AMCs and above all, the mutual fund investors. The mutual fund Industry is geared up for the next growth milestone of Rs.100 lakh crore AUM and 10 crore investors, which we are sure will be achieved sooner than expected as the industry has shifted gears to accelerate distribution outreach leveraging technology across the value chain.”
Venkat Chalasani, Chief Executive of AMFI said," While the MF industry took almost 50 years to build the first Rs.10 lakh crore of AUM, the last Rs. 10 lakh crore, from Rs.40 lakh crore to Rs.50 lakh crore was amassed in just over a year. The MF industry has continued to evolve over the years, offering a diverse range of investment options. It also emphasizes the collaborative efforts of various stakeholders in fostering a robust investment ecosystem.”
He further added, “The more encouraging aspect is the constant retail participation in a disciplined manner through the systematic investment planning (SIP) route. The B30 locations have instilled a new drive in the MF investment and the distributor fraternity has been working towards deeper financial inclusion.”
Here are some important highlights of this achievement:
- The number of unique mutual fund investors more than doubled over the last five years from 1.91 crore in December 2018 to 4.21 crore in December 2023
- Achieves 6x growth in 10 years; from Rs.8.25 lakh crore AUM in 2013 to Rs.50 lakh crore AUM in 2023
- Surge in investments by retail investors through SIP route one of the key enablers
- The monthly gross SIP inflows, which was around Rs.8,000 crore in FY20, have now scaled up to an all-time high of Rs.17,610 crore in December 2023 with cumulative inflows through SIPs alone crossing Rs.1,41,000 crore
- The SIP AUM as at the end of December 2023 touched Rs.10 lakh crore, which is another significant milestone
