How To Build ₹1,00,00,000 Using MFs

The route to becoming crorepati for retail investors demands a very systematic and disciplined approach. DSIJ team explains how you can achieve this goal with different durations, returns on investment and investment amounts.

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The latest monthly data released by the industry body Association of Mutual Funds in India (AMFI) for the month of December 2021 was very encouraging from an equity mutual fund perspective. According to AMFI monthly data, inflows of equity mutual funds have more than doubled to ₹325,077 crores in December 2021 compared to ₹11,615 crores witnessed in the month of November 2021 and against an outflow of 10,147 crores in December 2020. The net inflows registered in December 2021 in equity MF were the highest since April 2018. Even investments through the SIP route in the month of December 2021 were at ₹11,305 crore, which seems to be the highest ever figure.

Good inflows, along with a healthy surge in equity markets, has led to an increase in the share of equity schemes in the overall AUM of domestic mutual funds. It has increased from 31 percent at the start of the year to 36 percent by the end of the year 2021. For the year 2021, the total increase in AUM of equity MF has been ₹4.4 lakh crore, out of which around ₹1 lakh crore has come from inflows and the rest from mark-to-market gains. At the end of December 2021, equity-oriented schemes derived 88 percent of their assets from individual investors (Retail + HNI).