Mutual funds AUM value increased to 23.96 lakh crore Rupees at the end of July 2018. This is actually an increase of 5 percent from that of the MF AUM value at the end of June.
The mutual funds’ asset base increased by 5 percent to 23.96 lakh crore Rupees in July-end, from 22.86 lakh crore Rupees at the end of June, based on data available with AMFI (Association of Mutual Funds in India).
The total AUM of all the AMCs put together was 19.97 lakh crore Rupees in July last year.
The growth of AUM (Assets Under Management) in mutual fund industry comprising 42 players is due to the active participation from retail investors and the investor awareness campaign by the industry.
The monthly increase in the mutual funds AUM is mainly due to the MF industry’s investor awareness campaign and robust involvement from retail investors, NS Venkatesh, Chief Executive of AMFI, told PTI over the phone.
Besides the investor awareness campaigns and active participation from retail investors, the exceptional inflows in SIPs (Systematic Investment Plans) have also helped in the AUM’s surge.
SIPs continue to be the most preferred choice of retail investors and people continue to invest through SIPs as it facilitates them to invest in small amounts periodically as an alternative to invest a lump sum amount at a time, said Venkatesh.
About nine lakh new folios have been added in July increasing the total to all-time high of 7.55 crore in July-end from 7.46 crore in the previous month-end. The addition of fresh folios proposes that the new investors trust mutual funds to be the most hopeful investment products for the long term, added the AMFI’s, Chief Executive.
Retail equity mutual funds AUM has hit 10 lakh crore Rupees in July, and it was 9.61 lakh crore Rupees in June-end, according to a report from Money Control.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]