The Mutual Fund Industry has made a strong comeback this year in 2023, recovering from the weak performance of last year, 2022. This led to a spectacular increase of Rs 9 lakh crore in the industry’s assets under management (AUM).
Experts believe this growth has been due to a bullish stock market, stable interest rates and strong economic growth. He said that the positive momentum may continue next year. With strong growth, total investment this year has reached Rs 3.15 lakh crore, according to data from mutual fund body AMFI.
Also, the number of investors has increased by more than two crores. This was supported by the increasing popularity of SIP, in which Rs 1.66 lakh crore was invested.
23% Increase In AUM
Data from the Association of Mutual Funds in India (AMFI) shows that this flow (incoming investment) has increased the AUM of the mutual fund industry by 23 per cent, i.e. Rs 9 lakh crore in 2023.
This was much higher than the seven per cent growth seen in AUM during 2022 and a growth of Rs 2.65 lakh crore, as well as about 22 per cent growth in AUM in 2021 and a growth of about Rs 7 lakh crore.
Three Years Performance
Thus, the industry has collectively added Rs 18 lakh crore to its AUM in the last three years. According to the data, the AUM of the mutual fund industry is expected to increase from Rs 40 lakh crore at the end of December 2022 to an all-time high of Rs 49 lakh crore by the end of November 2023.
Increase For The 11th Consecutive Year.
Assets under management stood at Rs 37.72 lakh crore at the end of December 2021 and Rs 31 lakh crore at the end of December 2020. This is the 11th consecutive annual growth in the industry’s AUM. This year’s growth has been supported by inflows into equity schemes, especially through SIPs.
A Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC, has said that the positive trend will continue in 2024, and the huge growth in AUM can be attributed to the uptick in equity markets, stable interest rates and rising economic growth.
How Much Did The Sensex Rise?
Kaustubh Belapurkar, Director, Morningstar Investment Research India (Research Manager), said investors continue to invest in mutual funds for the long term. New investors are also increasingly investing in mutual funds, as seen in new folios over the year. This can be seen in good growth.
This year, Sensex has given a return of 19 per cent. At the same time, the BSE Midcap index has a return of 45 per cent, and the BSE Smallcap index has a return of 47 per cent.
