Mutual funds mark impressive Rs 9 trillion asset rebound

The mutual fund announced back strongly this year after a lackluster 2022 with a remarkable Rs 9 lakh crore surge in the asset base, propelled by a buoyant equity market, stable interest rates and robust economic expansion. Experts believe that the positive momentum should continue into the near year as well.

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With a substantial increase, the overall inflow this year has reached Rs 3.15 lakh crore, accompanied by a growth of over 2 crore in the investor count. This was supported by the increasing popularity of Systematic Investment Plans (SIPs), which drew in Rs 1.66 lakh crore, according to the data shared by the Association of Mutual Fund Industry (Amfi).

The inflow has pushed the assets under management (AUM) of the mutual fund industry by 23 per cent or Rs 9 lakh crore in 2023, the data showed.

This was way higher than the 7 per cent growth and Rs 2.65 lakh crore increase in AUM observed throughout 2022, as well as the nearly 22 per cent growth and close to Rs 7 lakh crore addition to the asset base in 2021.

Over the last three years, the industry has collectively added an impressive Rs 18 lakh crore to its AUM.

As per the data, the AUM of the mutual fund industry rose to an all-time high of Rs 49 lakh crore in 2023 (till November-end) from Rs 40 lakh crore at the end of December 2022. This year's tally does include December'number which will come out in the first week of 2024.

The asset base stood at Rs 37.72 lakh crore at the end of December 2021 and Rs 31 lakh crore in December 2020.

The 2023 also marked the 11th consecutive yearly rise in the industry AUM after a drop in the two preceding years. This year, the growth was supported by inflows into equity schemes, especially through Systematic Investment Plans (SIPs).