DPI GAVE 97% OF INDIANS DIGITAL ID

India's Digital Public Infrastructure (DPI) landscape has provided 97% of the Indian population with digital IDs, brought 40% of the population within the ambit of the banking ecosystem and is seeing a significant uptake in Tier2+ geographies as UPI, Account Aggregator and several other properties bring more underserved communities from the margin to the centre of the digital economy.

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THE ROLE OF TECHNOLOGY IN MUTUAL FUNDS IS SOMETHING WE CAN'T OVERLOOK. THE RISE OF FINTECH AND NEW INVESTMENT TOOLS IS CHANGING OUR WORK, FROM ALGORITHMS TO BETTER SYSTEMS FOR OUR INVESTORS.

MUTUAL FUNDS TRENDS IN 2024
NILESH SHAH, MD & CEO, KOTAK MUTUAL FUND

India's Mutual I Fund industry is on a growth spree, with a projected 21.5% CAGR by 2027. Our AUM has risen sharply to INR 49.04 trillion by November 2023, up from INR10 trillion in 2014. We're now serving over 16 crore accounts, thanks to supportive regulations, appealing equity schemes, and tech progress.

Yet, when compared to unregulated investments, there's more ground to cover. About 18 crore Indians are venturing into cryptocurrencies, 2 crore into high-risk Ponzi schemes, and nearly 10 crore are engaged in online gaming platforms like Teen Patti and Ludo, which lack investor protection. In comparison, over 4 crore investors have opted for the safer route of mutual funds. Our AUM-to-GDP ratio stands at 16%, well below the global average, indicating vast growth potential. Despite increased internet usage, our main business is still concentrated in top cities. We see growing interest from middle-income earners, yet only 2% of Indians invest in mutual funds. There's a huge untapped market waiting for us.

As we enter 2024, the mutual funds sector is evolving, shaped by global economic shifts, technological advancements, and changing investor behaviour.

The mutual fund industry is at a turning point. Domestic investors are playing a bigger role, providing stability against the flow of foreign investments.

MARKET ANALYSIS AND EVOLVING TRENDS