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Growing In Leaps And Bounds

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Growing In Leaps And Bounds
Growing In Leaps And Bounds
Kundan Kishore - 28 April 2022
That India’s mutual fund industry is becoming a formidable force in the Indian capital markets is hardly a secret. The hiccups of the past few years, including slowing economic growth and Covid-related lockdowns, paycuts and job losses, have hardly deterred the sector, which showed extraordinary growth. The total quarterly average assets under management (AUM) of the mutual fund industry has more than quintupled in the last 10 years. It has grown to over Rs 38.22 lakh crore, a compounded annual growth rate (CAGR) of 18.84 per cent, as on December 31, 2021, according to December 2011-2021 data from the Association of Mutual Funds in India. And there’s still room to grow. When I last curated the OLM 50 list of recommended mutual funds for Outlook Money in January 2015, the industry was managing assets worth merely Rs 10.51 lakh crore. The going has been strong ever since and the number of schemes has been rationalised to about 1,500. The Growth Story First, deeper penetration of financial products and the flexibility that mutual funds offer have given a boost. With a wide...
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