Many more Indians flock to MFs

Flow surge in equity schemes is an important reason why Indian stock market did not crash

The past three years have been phenomenal for the mutual fund (MF) sector. The equity segment, in particular, has seen almost unprecedented growth. Assets under management are now more than the Rs 5 lakh crore-mark; since the start of 2014, a little over 10 million accounts have been added in the equity category. After slipping to 29 million after the Lehman crisis, the investor base has steadily been rising over the past three years to 39.6 mn as of end-January 2017. 

Since May 2014, when the Narendra Modi government took charge, monthly net inflow in equity schemes have never turned negative,