Mutual Fund Industry Growth

Mutual Fund’s domestic business was earlier Rs 9.75 lakh crore, which became Rs 64.96 lakh crore by the end of July this year. According to Ananth Narayan Gopalakrishnan, a whole-time member of the Securities and Exchange Board of India (SEBI), financial transformation is taking place at a rapid pace due to the continued good health of the macro-economy and rising corporate profits.

Two days ago, Finance Minister Nirmala Sitharaman had said in her reply to the Finance Bill in Parliament that for the last five years, an average of 17.88 lakh new folios are being created every month for investment in mutual funds. That is why in the last 10 years, the business of mutual funds has increased more than six times.

In the year 2014, the domestic business of mutual funds was 9.75 lakh crores, which increased to Rs 64.96 lakh crores at the end of July this year. According to experts, the biggest reason for this is that mutual funds have given an average return of 18 percent in the last 20 years.

Increasing confidence of Indian investors

The mutual fund ecosystem is playing a major role in this change and due to good returns, Indian investors' confidence in it is also increasing. Madhu Nair, CEO of Union Mutual Fund, associated with Union Bank, said that there is all the potential to make money in mutual funds in India over the next 10 to 15 years, because the Indian economy is growing rapidly and after becoming the third largest economy, global investors will come to India. It will be seen as an asset class and then there will be more foreign investment in the market than now.

Lakhs of mutual fund folios are being created every month

Seeing this return, lakhs of mutual fund folios are being created every month and lakhs of new investors are registering themselves for investment under Systematic Investment Plan (SIP). According to the Association of Mutual Funds in India (AMFI), 72.61 lakh new registrations were done under SIP in July this year. The number of mutual fund folios in the country has reached 19.84 crores.

According to Ananth Narayan Gopalakrishnan, a permanent member of the Securities and Exchange Board of India (SEBI), the continued good health of the macro-economy and rising corporate profits are driving financial transformation at a rapid pace and a large number of people are tapping into their savings for capital formation.