The Indian mutual fund industry hit a landmark milestone as the assets under management (AUM) of the industry crossed 50 lakh crores in December 2023.
The industry has come a long way since 1987 when SBI became the first non-UTI AMC and Kothari Pioneer (now merged with Franklin Templeton MF) became the first private sector AMC in 1993.
Here are some key numbers about the Indian MF industry :
- Equity mutual funds have the highest AUM of Rs. 21.8 lakh crores worth of AUM.
- Debt mutual funds have an AUM of Rs. 12.9 lakh crores under management.
- Sub-category wise AUM break-up of equity, debt and hybrid mutual funds as of December 2023.
- The number of unique mutual fund investors has almost doubled in the last 3 years. From 2.15 crores in January 2021 to 4.04 crores in September 2023. But in the grand scheme of things, this is still a small number.
- Mutual funds have played a tremendous role in expanding the markets by giving individual investors an easy route to invest. These are still early days for the industry but the growth can seen in the steady increase in ownership of NSE-listed stocks by mutual funds.
- Individual investors have a share of 89% in equity mutual fund schemes. While the share is 40% in debt and only 14% in liquid/money market schemes. While a big chunk of AUM of ETFs is from the EPFO (Employees Provident Fund Organisation).
- As of November 2023, individual investors held Rs. 28.85 lakh crores in mutual funds ~59% of the total AUM of the mutual fund industry.
- Inflows via the Systematic Investment Plans (SIPs), have seen tremendous growth in the last few years, from ~Rs. 8,000 crores in 2021 to ~Rs. 17,500 crores by December 2023.
Data from: @IndiaDataHub
- The AUM of SIPs contributes to ~19% of the total mutual fund industry AUM.
