Domestic mutual funds (MFs) have grown at a healthy pace in the past few years. The growth in assets under management (AUM) in the past one year has been 27%, despite equity markets remaining flat. Notably, it has been broad-based, with even smaller states/UTs witnessing encouraging growth.
Maharashtra, Delhi and Karnataka, the bulk of the industry’s AUM, grew slightly below the sectoral growth rate, while smaller states saw exponential growth, albeit on a low base.
Currently, the MF industry has around 10 million unique investors. Players say the investor count could climb 10-fold if smaller regions continue the growth trend.