# Interesting statistics about the Indian Mutual Fund Industry

**URL:** https://tradingqna.com/t/interesting-statistics-about-the-indian-mutual-fund-industry/46185
**Category:** Personal finance
**Created:** [September 6, 2018, 10:46am UTC](https://tradingqna.com/t/interesting-statistics-about-the-indian-mutual-fund-industry/46185 "2018-09-06T10:46:03Z")
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### Author: ![Abhishek87](https://tradingqna.com/user_avatar/tradingqna.com/abhishek87/32/4677_2.png) [@Abhishek87](https://tradingqna.com/u/Abhishek87)
#### Post date: [September 6, 2018, 10:46am UTC](https://tradingqna.com/t/interesting-statistics-about-the-indian-mutual-fund-industry/46185/1 "2018-09-06T10:46:03Z")

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AMFI recently celebrated its 25th anniversary and [released a factbook](https://www.crisil.com/en/home/our-analysis/reports/2018/08/digital-evolution.html) in association with CRISL. Here are some interesting numbers about the industry.

> The ratio of the industry’s assets under management (AUM) to bank deposits has grown from  
> 13% as of March 2016 to 22% as of March 2018.
> 
> Growth has not been just an urban phenomena. Assets under management from cities beyond the top 15 (B15) have grown at 32% annualised since 2014.
> 
> Money entering mutual fund schemes through the digital route has multiplied from ~0.5% of gross inflows two years back to ~10% in June 2018. - **Ashu Suyash MD & CEO, CRISIL Ltd.**

**History of the Indian Mutual Fund Industry**

**1963** : Formation of the Unit Trust of India

**1964** : Launch of the maiden scheme of UTI-Unit Scheme

**1987** : Entry of public sector funds SBI Mutual Fund was first one followed by Canbank Mutual Fund

**1993** : Emergence of private sector funds Franklin Templeton (erstwhile Kothari Pioneer) was the first of its kind

**1993-2003** : Robust growth and revised MF regulation from SEBI in 1996, entry of foreign funds, several mergers and acquisitions.

**2009:** Removal of the entry load

**2012** : Single plan structure for mutual fund schemes **l** Cash investment allowed in mutual funds l Fungibility of total expense ratio (TER) allowed **l** Portion of TER to be used for investor education **l** Entire exit load to be credited to the scheme **l** Launch of Rajiv Gandhi Equity Savings Scheme (RGESS)

**2013** : Reduction in Securities Transaction Tax (STT) for equity funds **l** Uniform Dividend Distribution Tax (DDT) of 25% on all debt mutual funds **l** Product labelling **l** Introduction of direct plans

**2014** : Changed the definition of ‘long term’ for debt mutual funds to 36 months from 12 months for LTCG **l** Tax exemption limit for investment in financial instruments under Section 80C raised to Rs 1.5 lakh from Rs 1 lakh

**2015** : Launch of MF Utility (MFU) - Digital aggregator platform by the industry, for the industry **l** SEBI asked fund houses to shift from colour coding to Riskometer which classified schemes based on the risk profile **l** EPFO started investing in the equity market via Exchange Traded fund (ETF) **l** SEBI allowed gold ETFs to invest up to 20% of their assets in the government’s Gold Monetisation Scheme

**2016** : SEBI tightened norms for mutual fund investment in corporate bonds **l** Allowed investment advisors to use the infrastructure of the stock exchanges for sale and purchase of mutual fund units **l** Provided easy entry to the foreign fund managers keen to enter India

**2017** : SEBI allowed mutual funds to invest in REITs and InvITs **l** Allowed investment up to Rs 50,000 per mutual fund per financial year through digital wallets **l** Instant access facility to the liquid funds investors (via online mode) of up to Rs 50,000 or 90% of the folio value, whichever is lower **l** Government discontinued the tax benefits of RGESS

**2018** : SEBI asked fund houses to benchmark returns of equity schemes against a total return index (TRI) **l** SEBI introduced categorisation and rationalisation of mutual fund schemes making it simpler for investor to understand **l** LTCG of 10% without indexation introduced for equity-oriented funds for investment horizon of \> 1 year, subject to capital gains of over Rs 1 lakh per assessee per year. Dividend plans of equity-oriented funds subject to a DDT of 10%, deducted at source l Mutual fund houses asked to disclose TER for all schemes under a separate head on their websites on a daily basis **l** SEBI further redefined the scope for T15/B15 cities to T30/B30 and push for higher penetration

**Growth of MF assets in India Vs other major countries**

 ![image](https://tradingqna.com/uploads/default/original/2X/d/da2c8d7b542d2cddfde34e76c0763e9b42e19601.png)  
**Share of mutual funds vs banks and insurance in financial investments of India**  
 ![image](https://tradingqna.com/uploads/default/original/2X/1/1677cf78b8190faedc1d55b22300955f4db0c605.jpg)

**Share of mutual funds in the financial markets**

 ![image](https://tradingqna.com/uploads/default/original/2X/7/78bcfc79657a4cfbfbacd191f355ff67f2803d67.jpg)

**AUM break-up of the industry new structure**

 ![image](https://tradingqna.com/uploads/default/original/2X/7/718cbf228a559f5f1142da04b48741ee4bc99a05.png)

**SIP contribution and number of accounts on steady uptrend**

 ![image](https://tradingqna.com/uploads/default/original/2X/9/9ea931aede56b0190e9ab65e2feaafcbc5cf50d1.jpg)

**Growth of Rs 10,000 in equity mutual funds versus benchmarks**

 ![image](https://tradingqna.com/uploads/default/original/2X/d/df1f5b91e258679777667312d9fd4df06427101b.png)

**Debt dominates, but equity catching up in assets and inflows**

 ![image](https://tradingqna.com/uploads/default/original/2X/0/0a5434359f23dfa839d55067d28e726b3534567b.png)

**Equity funds’ AUM and net flows**

 ![image](https://tradingqna.com/uploads/default/original/2X/4/400e1445302abd4c489ac7268ef3d92b692adc17.png)

**Individual investors gaining momentum**

 ![image](https://tradingqna.com/uploads/default/original/2X/9/922a6f2bbc82eee369327fb3d9ece7503d353993.png)

**Assets of individual investors has grown faster**

 ![image](https://tradingqna.com/uploads/default/original/2X/1/1421736c1ed869eeda612a4397f33834081efe36.png)

**AUM breakup of individual and institutional investors**

 ![image](https://tradingqna.com/uploads/default/original/2X/b/b1fd3b157d7a7032b75062af1e4b8c9a2dbd3363.jpg)

 ![image](https://tradingqna.com/uploads/default/original/2X/1/1affa5f0d8f89a1b079c029fa10c4fa10c8f8b4b.jpg)

**Passive funds gaining popularity**

 ![image](https://tradingqna.com/uploads/default/original/2X/d/dc4cac2a63be3850324df83d739fa01bd9d02b6a.png)

 ![image](https://tradingqna.com/uploads/default/original/2X/8/8a9268b8ec85d155391e4971f390adc64eb013ce.png)