The average assets under management of the mutual fund industry touched an all-time high of Rs.20 lakh crore in June 2017. AMFI’s latest data shows that AAUM of the MF industry has reached Rs.19.92 lakh crore in June 2017. The MF industry witnessed an increase of 8% from Rs.18.29 lakh crore in March 2017, a growth of close to Rs.1.63 lakh crore.
However, the monthly AUM of industry stood at Rs.18.96 lakh crore in June 2017.
The AUM of the industry was Rs.3.26 lakh crore as on March 2007. This shows that there has been a six-fold increase in a span of 10 years from Rs.3.26 lakh crore in March 2007 to Rs.18.96 lakh crore in March 2017. In the last five years, the AUM has tripled from Rs.5.87 lakh crore as on March 2012 to Rs.18.96 lakh crore as on June 2017.
The industry’s AUM had crossed the milestone of Rs.10 lakh crore for the first time in May 2014 and in a short span of three years, the AUM size has doubled to touch Rs.20 lakh crore.
Experts say that the growth has come largely because of higher inflows in equity funds through SIPs and mark to market gains. They also attribute this growth to the awareness programs along with the district adoption programs.
Ashutosh Bishnoi, CEO, Mahindra Mutual Fund says the efforts of fund houses to spread awareness about mutual funds has started to bear fruit. “The reach of the mutual fund industry has grown over the years. Mutual fund distributors are selling products even in smaller cities. Fund houses have also been aggressively marketing their products. Moreover, the 2 bps of the total industry AUM that is reserved for advertising has also helped in a big way to propagate mutual funds among the masses. In addition, the various campaigns on TV and elsewhere has aroused curiosity among people about mutual funds,” says Ashutosh.
The increase in investor appetite is evident from the folio count. The number of folios under equity, ELSS and balanced schemes, where the maximum participation is from retail segment stood at 4.70 crore i.e. nearly 80% of the total folios. In fact, the AMFI data shows that the MF industry has added about 20 lakh SIP accounts and received inflows of Rs. 15,000 crore through SIPs in the first three months of FY 2017-18.
