Market Trends of India Mutual Fund Industry
Hike in Mutual Fund Assets is Driving the Market
In addition to the asset base, retail investors' share of the industry's assets increased to 57 percent compared to 55 percent last January. Institutional investors make up 43 percent, of which corporates make up 96 percent. The rest are Indian and foreign institutions, as well as banks. Individual investors mostly stick to equity-oriented schemes, while institutions stick to liquid, debt-focused schemes, and ETFs and FFOs. in this route despite the volatility of the markets. Mutual fund SIP contributions have increased more than three-fold over the past seven years. Furthermore, the SIP book increased by 16 percent from the same time last year.
In addition to the asset base, retail investors' share of the industry's assets increased to 57 percent compared to 55 percent last January. Institutional investors make up 43 percent, of which corporates make up 96 percent. The rest are Indian and foreign institutions, as well as banks. Individual investors mostly stick to equity-oriented schemes, while institutions stick to liquid, debt-focused plans, ETFs, and FFOs.
Rising Share of Small Cities in Mutual Funds Assets Under Management is Driving the Market
The Sensex has gone up by a whopping 100% in the past three years, which has had a significant impact on investor behavior and how investors view stocks. At the same time, the number of demat CDSL and NSDL accounts has gone up by 2.85 times, the number of SIP accounts has doubled, and the average monthly SIP contribution in the mutual fund industry has gone up by 18%. But one of the most significant changes in the economy and India's saving habits has been the rise of small towns in terms of mutual fund assets under management (AUM). India's Association of Mutual Funds has classified these cities as 'Other cities,' a category not included in the country's top 110 cities (regarding industry AUM contribution). In the current year, these cities make up 17% of the total AUM in the industry.
