Rapid Growth in Assets of India's Mutual Fund Industry
(This is for information and educational purposes only. This should not be
construed as a recommendation or investment advice even though the author is a CFA
Charterholder. Please consult your financial adviser before taking any
investment decision. Safe to assume the author has a vested interest in stocks
/ investments discussed if any.)
During the financial year 2023-24, total assets of India's mutual fund industry grew by 35 per cent. The total assets under management (AUM) grew from Rs 39.4 lakh crore as on 31Mar2023 to Rs 53.4 lakh crore as on 31Mar2024.
The growth can be attributed to surging investor interest in mutual funds, a 38-per cent rise in BSE 500 index in 2023-24 and launch of a spate of new fund offers (NFOs) by the industry.
The assets further grew to Rs 61.16 lakh crore as on 30Jun2024, as per data of mutual fund industry body AMFI or Association of Mutual Funds in India.
The following table provides details of total assets from 2013 to 2024 and the yearly growth rates:
Financial years 2016-17, 2020-21, 2023-24 and 2014-15 have experienced extremely high growth rates in assets.
The following table gives details of total assets from 2000 to 2012 and the yearly growth rates:
Financial years 2003-04, 2005-06, 2007-07, 2007-08 and 2009-10 have seen spectacular growth rates in asset size of Indian mutual fund industry.
During the UPA Government (2004-2014), the compounded annual growth rate of MF industry was 19.44 percent -- with an absolute growth of 491 percent between 31Mar2004 and 31Mar2014.
During
the NDA Government (2014-2024), the compounded annual growth rate of MF
industry was 20.53 percent -- with an absolute growth of 547 percent
between 31Mar2014 and 31Mar2024.
The data show that during the NDA regime, the industry's annualised asset growth is higher by one percentage point; in absolute return terms, the growth is higher by 56 percentage points.
This is an update of an earlier blog written last year.
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The Reference Shelf:
AMFI monthly data
Negative Impact of Debt Mutual Fund Tax Changes
EPFO Investments in Stocks Via ETFs
Why Do Indian Equity MFs Always Disappoint Investors?
Indian Mutual Funds and the Art of Ripping off Investors
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Disclosure: I've got a vested interest in Indian stocks and other investments. It's safe to assume I've interest in the financial instruments / products discussed, if any.
Disclaimer: The analysis and opinion provided here are only for information purposes and should not be construed as investment advice. Investors should consult their own financial advisers before making any investments. The author is a CFA Charterholder with a vested interest in financial markets.
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