MF assets, investors reach new highs in 2016

Mutual fund industry saw assets and investor count touch new highs in 2016

The mutual fund (MF) industry saw assets and investor count touch new highs in 2016. Total MF accounts rose 13.5 per cent to 52 million (till November), while assets under management (AUM) increased 30 per cent during the year to a record high of Rs 16.5 lakh crore. Net investor flows stood at Rs 2.75 lakh crore; however, debt schemes accounted for most of the flows. Industry players say the year has been encouraging for the industry despite events such as the commodity meltdown on global growth concerns, Brexit and the recent demonetisation in the country. Fund houses added around 3.9 million (350,000 a month) equity accounts in 2016 despite sharp volatility in the markets. The investor account for the domestic MF industry had dropped to 29 million in 2013 from a peak of 41 million in 2008. For a second year in a row, low-risk debt MFs delivered better returns than the risky equity schemes.