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Mutual funds' share in household savings jump 150% in FY22: RBI data

Retail investments in MF rise as flows into bank deposits drop

INVESTMENT, PLANS, SAVINGS, mf, mutual funds, investors, equity, pension, NPS, funds
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Experts say the rise in MF investments shows that people in the formal economy and those with additional income weren't as badly hit by inflation as the lower income groups

Abhishek Kumar Mumbai
Mutual funds (MFs) recorded a 150 per cent jump in gross inflows from retail investors during 2021-22 (FY22), even as overall household savings declined 19 per cent year-on-year.

In FY22, domestic MFs received Rs 1.6 trillion gross inflows from households, revealed data released by the Reserve Bank of India (RBI).

Given that households saved a total of Rs 25 trillion in the last financial year, the share of MFs in total gross savings stood at 6.3 per cent — the highest in four financial years. In fact, gross inflows into MFs were the highest in at least a decade.

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First Published: Sep 28 2022 | 8:40 PM IST

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