Investment in mutual funds is attracting investors!
The mutual fund industry has seen a tremendous jump in asset and management. In May 2008, the asset and management of the mutual fund industry was Rs 5.89 lakh crore, which has increased to Rs 53.4 lakh crore in march 2024. According to the report of Association of Mutual Funds in india (AMFI) and Crisil, the share of mutual funds in indian domestic savings has increased steadily, from 7.6 percent in FY 2021 to 8.4 percent in FY 2023. This growth is a testament to the growing importance of the industry and the trust placed in it by investors.
The mutual fund industry has played a key role in empowering indian families and investors to be a part of the country's growth story, providing a platform for wealth creation and financial inclusion. Despite the continued volatility in the stock market, the AUM for all open-ended schemes in january rose marginally by 0.49 per cent to Rs 66.98 lakh crore.
According to the AMFI report, mutual funds have made it possible for investors to benefit from a diversified portfolio managed by experienced professionals even with modest investments. The report states that the industry has seen tremendous growth in wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital transactions, with nearly 90 per cent of all mutual fund purchases in FY24 being made through wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital channels. SEBI has played an important role in maintaining the integrity and stability of the mutual fund landscape. According to AMFI President Navneet Munot, the regulatory framework has not only helped protect investors but also encouraged fund managers to adhere to high standards of accountability and operations.
He said, "SEBI has strengthened the credibility of mutual funds as reliable investment instruments, making them the preferred choice for investors planning for important life goals such as retirement, housing, children's education and long-term wealth creation." He further said that retail investors have played a key role in providing stability to the capital markets and driving the growth of the mutual fund industry. The report said that women investors now account for more than 25 percent of individual investors and hold 33 percent of total AUM.
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