India Mutual Fund Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

India Mutual Fund Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The AuM in India Mutual Find Industry stands at 24.55 trillion INR as of May 31st, 2020. The AuM in India has grown four fold in a decade (2010 - 2020) and aims at fourfold growth by 2025. Equity AuMs continued to be the major contributor with 42.1% share while debt oriented schemes accounted for 28.8% of AuMs and Liquid/money market accounted for 23.3% in September 2019.

Digital penetration, government targeting smart cities and increased data speeds are also facilitating the drift of asset share towards smaller cities and towns. Increased retail contribution through SIPs shows the power of digital penetration in India.

The total number of folios as on May 31, 2020 stood at 91 Million, and the maximum investment is from retail segment stood at INR 80.3 Million.

Key Market TrendsGrowing base of individual investors, with increasing ticket size

The industry has seen growing participation from households in recent years, given growing awareness, financial inclusion, and improved access to banking channels. The industry added 44.2 million folios between March 2014 and June 2019. Almost the entire growth in folios came from the individual investors' segment (retail & HNI), which logged a CAGR of 15.5% over this period. Their average ticket size, too, increased from 102,000 INR in March 2014 to 169,000 INR in June 2019.

As of June 2019, 57.4% of individual investors’ AUM was into equity-oriented funds, whereas institutional investors mainly preferred the fixed-income segment (debt and liquid/ money market), which constituted 77.2% of their assets. SIP vehicles are largely driven by retail investors due to increased financial awareness, increased digital penetrations.

Significance of Systematic Investment Plan (SIPs) as a Tool of Investment in MF in India

As new retail investors are coming up, Systematic investment plan have a steady uptrend despite market volatility. Total SIP accounts have increased from 10 Mn in April 2016 to 27.3 mn in June 2019. SIPs taken by investors with a long-term investing horizon give better returns and reducing negative returns significantly. There are almost 32 Million SIP accounts as of May 2020 through which investors regularly invest in Indian Mutual Fund Schemes. The SIP installment amount could be as small as ₹ 500 per month. SIP has been gaining popularity among Indian MF investors, as it helps in Rupee Cost Averaging and also in investing in a disciplined manner without worrying about market volatility and timing the market.

Competitive Landscape

The report includes an overview of MF companies operating across India and within one or a few other countries. We wish to present detailed profiling of a few major companies which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players dominating the market are listed below.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
SBI Mutual Fund
HDFC Mutual Fund
ICICI Prudential Mutual Fund
Reliance Mutual Fund
Aditya Birla Sun Life Mutual Fund
DSP BlackRock Mutual Fund
Kotak Mutual Fund
IDFC Mutual Fund
Tata Mutual Fund
Invesco Mutual Fund
Sundaram Mutual Fund*

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