Mutual fund industry assets surge 30% to Rs 36.17 trillion, shows data

Strong performance by the equity markets and net inflows to equity schemes led to an increase in the assets size of the mutual fund (MF) industry. For the quarter ended December 31, 2021, the average assets under management (AAUM) of the industry stood at Rs 36.17 trillion -- growth of nearly 30 per cent over a year.

SBI MF continued its dominant position with AAUM of Rs 6.25 trillion in October-December 2021, against Rs 4.56 trillion in the year-ago period -- a jump of 37 per cent. The AAUM of ICICI Prudential MF and HDFC MF stood at Rs 4.67 trillion and Rs 4.47 trillion in the quarter under review.

Top players, such as Axis MF, Nippon India MF, and Kotak Mahindra MF, grew their AAUM by 32-43 per cent in a year, showed the data from the Association of Mutual Funds in India (Amfi). Of 44 fund houses, AAUM numbers of only 36 fund houses were available at the time of going to press, and the total AAUM number of the industry may change later.

Swarup Mohanty, CEO, Mirae Asset Investment Managers (India), said: “The MF industry has been one of the biggest beneficiaries of the financialisation of savings over the past few years. The calendar year 2021 was great for the markets and combined with changing demography and addition of new investors, the industry has continued to grow.”

 

In 2021, Indian equities gave returns of nearly 24 per cent and equity funds continued to attract money from investors. Between January and November of 2021, equity funds saw net inflows of around Rs 71,600 crore. Inflows through systematic investment plans (SIPs) stood at nearly Rs 1.02 trillion.

Fund houses such as quant MF, Edelweiss MF, and Canara Robeco MF witnessed a sharp increase in their assets. Market participants say that even in 2022, equity funds will continue to attract money because investors have realised the importance of saving through SIPs.

In the past three months, inflows through SIPs were over Rs 10,000 crore for each month, with November witnessing the highest-ever SIP contribution of Rs 11,005 crore.