NEW DELHI: Mutual funds have added a staggering Rs 1.24 lakh crore to their asset base in 2018 assisted through consistent build up in SIP flows and a strong participation of retail investors in spite of risky markets.
The asset underneath control (AUM) of the industry grew through 5.54 in keeping with cent or Rs 1.24 lakh crore to Rs 23.61 lakh crore on the end of December 2018, up from Rs 22.37 lakh crore on the end of December 2017, latest data available with the Association of Mutual Funds in India (Amfi) showed.
The year 2018 also marked the 6th consecutive yearly upward push within the industry's AUM after a drop within the two preceding years.
The pace of expansion, on the other hand, declined for the asset size in 2018 as in comparison to the previous year. The industry noticed a surge of 32 in keeping with cent within the AUM or an addition of over Rs 5.four lakh crore in 2017.
The IL&FS default and the ensuing blow to the NBFC sector as a result of the credit score crunch, uncovered mutual funds to ill-liquid debt funds worth lakhs of crores. This coupled with risky markets might be some of the causes for a slower expansion in assets base ultimate year.
Quantum Mutual Fund MD and CEO Jimmy Patel attributed the rise in mutual funds' asset base in 2018 to robust participation of retail investors that continued to stay buoyant with their SIP investments in spite of emerging crude oil prices, rupee depreciation and inventory market volatility.
In addition, markets regulator Sebi's efforts on investor schooling as well as Amfi's 'Mutual Fund Sahi Hai' marketing campaign also helped the industry, he added.
Fund homes consider that an uptrend is expected in 2019 too as great amount of flow is expected thru SIP (Systematic Investment Plan) path because it is helping in rupee price averaging and in addition in making an investment in a disciplined way without worrying about market volatility and timing the market.
"Among the factors that can lend a hand any such transfer in 2019 is that an ever larger percentage of the flow is through SIP which provides to the present AUM. Also, the choice of folios that are added on a per month basis continue to be powerful indicating that increasingly more new investors are making an investment thru mutual funds.
"Increased geographical penetration and technology may also result in greater participation in MFs," Essel Mutual Fund CIO Viral Berawala said.
The asset underneath control (AUM) of the industry grew through 5.54 in keeping with cent or Rs 1.24 lakh crore to Rs 23.61 lakh crore on the end of December 2018, up from Rs 22.37 lakh crore on the end of December 2017, latest data available with the Association of Mutual Funds in India (Amfi) showed.
The year 2018 also marked the 6th consecutive yearly upward push within the industry's AUM after a drop within the two preceding years.
The pace of expansion, on the other hand, declined for the asset size in 2018 as in comparison to the previous year. The industry noticed a surge of 32 in keeping with cent within the AUM or an addition of over Rs 5.four lakh crore in 2017.
The IL&FS default and the ensuing blow to the NBFC sector as a result of the credit score crunch, uncovered mutual funds to ill-liquid debt funds worth lakhs of crores. This coupled with risky markets might be some of the causes for a slower expansion in assets base ultimate year.
Quantum Mutual Fund MD and CEO Jimmy Patel attributed the rise in mutual funds' asset base in 2018 to robust participation of retail investors that continued to stay buoyant with their SIP investments in spite of emerging crude oil prices, rupee depreciation and inventory market volatility.
In addition, markets regulator Sebi's efforts on investor schooling as well as Amfi's 'Mutual Fund Sahi Hai' marketing campaign also helped the industry, he added.
Fund homes consider that an uptrend is expected in 2019 too as great amount of flow is expected thru SIP (Systematic Investment Plan) path because it is helping in rupee price averaging and in addition in making an investment in a disciplined way without worrying about market volatility and timing the market.
"Among the factors that can lend a hand any such transfer in 2019 is that an ever larger percentage of the flow is through SIP which provides to the present AUM. Also, the choice of folios that are added on a per month basis continue to be powerful indicating that increasingly more new investors are making an investment thru mutual funds.
"Increased geographical penetration and technology may also result in greater participation in MFs," Essel Mutual Fund CIO Viral Berawala said.
Mutual Funds add Rs 1.24 lakh cr to asset base in 2018
![Mutual Funds add Rs 1.24 lakh cr to asset base in 2018]()
Reviewed by Kailash
on
January 06, 2019
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