.jpg?downsize=773:435 "Mutual Funds’ AUM Rises To Record Rs 21 Lakh Crore In September Quarter")
- Mutual fund industry's asset base surged 7.6 percent to a record high
- In a short span of three years, the asset base has more than doubled to Rs 21 lakh crore at the end of September
- It had touched a record high of Rs 20.6 lakh crore by August-end
The mutual fund industry's asset base surged 7.6 percent to a record high of Rs 21 lakh crore at the end of September quarter, driven by strong participation from retail investors.
In comparison, assets under management of the mutual fund industry, comprising 42 players, were at Rs 19.52 lakh crore during the April-June quarter, as per latest data with Association of Mutual Funds in India.
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 asset base has more than doubled to Rs 21 lakh crore at the end of September 2017, it added.
Prior to this, it had touched a record high of Rs 20.6 lakh crore in August-end.
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Industry insiders attributed the rise in the asset base to increased participation from retail investors and high net-worth individuals that attracted investments in both debt and equity segments. Besides, awareness campaigns by asset management companies and industry body AMFI has helped in increasing penetration of mutual funds.
Low interest on deposits appears to be luring more investors into mutual funds. Further, systematic investment plans have also given investors a choice as well as the flexibility of investing periodically or in a lump sum as per their preference.Vidya Bala, Head-Mutual Fund Research, FundsIndia.com
SIP is an investment vehicle offered by mutual funds, allowing people to invest in small amounts periodically instead of in lump sum amount. The investment frequency is either weekly, monthly or quarterly.
Of the 42 fund houses, as many as 37 witnessed growth in their asset base, while two saw decline in their AUMs. The AMFI data did not include assets base of Sahara Mutual Fund, Escorts Mutual Fund and SREI Mutual Fund.
ICICI Prudential Mutual Fund continued to be the largest with an AUM of Rs 2,79,066 crore (excluding fund of funds) followed by HDFC Mutual Fund (Rs2,69,781 crore), Reliance Mutual Fund (Rs 2,31,425 crore), Aditya Birla Sun Life Mutual Fund (Rs 2,24,650 crore) and SBI Mutual Fund (Rs 1,88,030 crore).
A mutual fund pools in assets of its investors and invests the money on their behalf. It provides diverse investment instruments like stocks and bonds without requiring investors to make separate purchases and trades.
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