Overall inflow in MF schemes stood at Rs 63,504 crore last month. Asset under management (AUM) of domestic mutual fund industry surpassed the Rs 20 lakh crore mark in August 2017.
The figure has got doubled over the last three years from Rs 10.10 lakh crore in August 2014.
Going by market experts, the last three years, and especially, the last year have been characterised by large inflows into equity and balanced funds, with increasing participation from retail and HNI investors. Individual investors’ share of overall AUM has increased to 48 per cent from 45 per cent a year ago.
“Market regulator Sebi has been taking measures over the last few years to increase mutual fund penetration in smaller cities and getting newer investors into the fold by allowing for an additional 30 basis point expense and 2 basis points towards investor education. These seem to be paying off as there has been a rapid rise in the number of new folios as well as increasing share of assets from smaller cities (termed at B-15 cities), which now account for 18 per cent of the overall AUM,” said Kaustubh Belapurkar, Director — Manager Research, Morningstar Investment Adviser India.
Small investors are also looking aggressively to invest in mutual funds though Systematic Investment Plans (SIP). At present, the industry receives around Rs 5,000 crore per month via SIPs. The figure was around Rs 3,497 in August 2016 and Rs 3,122 in April 2016.