MFs to focus on stronger inclusion of investors from mass income segments

MFs to focus on stronger inclusion of investors from mass income segments

New Delhi: Stronger inclusion of investors from deeper geographies and from mass income segments can contribute towards its growth story in coming times, the report said after deliberations of CII Mutual Fund Summit.

India has witnessed tremendous growth in its mutual funds industry that has grown from Rs 1.13 lakh crores to Rs 31.7 lakh crores in AUM from March 2000 to February 2021.

It translates to a strong CAGR of 17% over these 21 years. While urban affluent customers have been the largest contributor to this growth, the industry has also come a long way in penetrating to smaller cities and towns, the report said.

B30 locations have grown at twice the rate of T30 between FY14 and FY20, and accounts for 21% of total AUM as of March 2020.

The regulator has well supported this expansion by enabling higher expenditure in smaller cities to develop the market. Further, “retailization” of investments with SIPs has provided a solid foundation to the industry, with over Rs 8000 crores of retail inflows coming every month, owing to simplification and democratization of equity markets participation with over 3.63 crore SIP accounts in operation currently, the report said.

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