Mutual funds add over Rs 4 lakh cr to asset base in 2019, expects momentum to continue in new year

Mutual funds have added a staggering over Rs 4 lakh crore to their asset base in 2019 and the industry expects the growth trajectory to continue in the new year on the back of strong inflows in debt schemes and measures taken by regulator Sebi for boosting investors' confidence.

It was because of strong inflows into debt-oriented schemes that saved 2019 from being a "dark-dull year of investing" as inflows into equity funds has dropped this year due to a volatile market.

Going ahead, the industry should witness growth in the range of 17-18 per cent in 2020 and equity funds should see robust inflows as expectations are high about improved equity markets and a revival in economic growth, industry body AMFI's CEO N S Venkatesh said.

The asset under management (AUM) of the industry rose by 18 per cent (Rs 4.2 lakh crore) to an all time high of Rs 27 lakh crore in 2019 by November-end itself, up from Rs 22.86 lakh crore at the end of December 2018, as per the latest data available with the Association of Mutual Funds in India (Amfi).

Some industry experts said the final December-end figure might be slightly lower than the November-end level, as liquid funds could see some dip due to a quarter-end phenomenon.

Kaustubh Belapurkar, Director Manager Research at Morningstar Investment Adviser India said, "While the mutual fund industry saw a significant growth post-demonetisation, there has been steady but not spectacular growth in 2019. But given the backdrop of the pessimism due to slowing economic growth, credit crisis and volatile markets, this growth is quite admirable."