Mutual funds' assets base surged to over Rs 23 lakh crore in 2017-18, adding Rs 4.75 lakh crore to the kitty, due to a spirited investor awareness campaign by the industry and strong participation from smaller towns.
Moreover, fund houses may see robust growth in AUM (asset under management) in the current financial year too, as the penetration levels of mutual funds are still very low in the country.
Total AUM of all the fund houses put together soared by Rs 4.75 lakh crore, or 26%, to Rs 23.05 lakh crore at the end of just concluded fiscal on March 31, 2018 from Rs 18.30 lakh crore in financial year 2017, latest update with Association of Mutual Funds in India (Amfi) noted.
The industry has seen an overall addition of 32 lakh new investors over the last one year, while the total number of folios grew by 1.05 crore or 26% during the period.
The SIP accounts grew by 70 lakh to 2.05 crore in the fiscal 2018. Besides, SIP contribution for the industry surged to Rs 6,425 crore in 2017-18, compared to nearly Rs 44,000 crore in the preceding fiscal.
Mutual funds added 32 lakh new investors last year
Mutual fund industry has added 32 lakh new investors last year due to increased awareness of mutual funds through 'Mutual Funds Sahi Hai' campaign, says Association of Mutual Funds in India (AMFI). AMFI is the industry association of Asset Management Companies (AMCs) of all mutual funds in India.
The first leg of ‘Mutual Funds Sahi Hai’ campaign was launched on Mar 15, 2017. It aimed at creating awareness and busting myths around mutual funds. The campaign got a very positive response. The industry witnessed AUM growth of 25% (Rs.4.25 lakh crore), 38% (Rs.3.25 lakh crore) growth in retail AUM till Feb 28, 2018, in comparison from Mar 31, 2017. The total number of folios and SIP accounts in the same period saw a growth of 26% (1.05 crore) and 52% (70 lakh) respectively. Monthly SIP contribution for the industry touched Rs. 6,425 crores from 2.05 crore SIP accounts.
AMFI recently tied-up with a leading media house to launch Jan Nivesh – an initiative that will educate, inspire and encourage Indians to change their financial habits to create wealth smartly by investing regularly in mutual funds and thus, make every citizen of India an equal participant in India’s economic growth story. Along with millions of TV viewers, the Jan Nivesh initiative will also reach out to over 50,000 people on-ground through over 200 events in over 100 cities and towns.
Source: Association of Mutual Funds in India, Press Trust of India
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