• Invest
    Investment Suite
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Currency
    Non Convertible Debentures
    Sovereign Gold Bond
    Exclusive
    NRI Account
    Private Client Group
    Features
    SipIt
    MTF
    Investment Suite
    Exclusive
    Features
  • Platform
    Product Suite
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Features and Tools
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Payoff Analyzer
    Calculators
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    All Calculators
    Product Suite
    Features and Tools
    Calculators
  • Pricing
  • Research
    Research Calls
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Research Reports
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
    Research Calls
    Research Reports
  • Market
    Stocks
    Market Movers
    Large Cap
    Mid Cap
    Small Cap
    Indices
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    All Indian Indices
    Mutual Funds
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    All AMC's
    IPO
    Upcoming IPO
    Current IPO
    Closed IPO
    Recently Listed IPO
    Stocks
    Indices
    Mutual Funds
    IPO
  • Learn
    Resource
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Quarterly Results
    Investing Guide
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Commodities
    Currency
    Futures & Options
    Derivatives
    Margin Trading
    Events
    Budget 2024
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2024
    Resource
    Investing Guide
    Events
  • Partner
    Business Associates
    Fund Expert
    Kotak Connect Plus
    Startup connect
  • Support
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement
​

Recent Trends in Mutual Fund Industry

  •  3 min read
  • 0•
  • 14 Feb 2024
Recent Trends in Mutual Fund Industry

The Indian mutual fund industry has come a long way since its humble beginnings in 1961. The industry's assets under management (AUM) have witnessed more than fivefold increase in a span of 10 years - from Rs 8.90 trillion as of November 30, 2013, to Rs 49.05 trillion as of November 30, 2023.

Today, mutual funds have emerged as one of the most sought-after financial instruments by retail and institutional investors for achieving various financial goals. The industry has also witnessed several trends highlighting how it is geared for the future.

1. Rise of Digitalization Making Mutual Fund Investments Seamless

The industry has witnessed a marked increase in digitalization, allowing investors to invest, track, and monitor their investments at the click of a button. Today, many fintech platforms have come up with apps that enable you to invest in a range of funds, track them in real time, and get a 360-degree view of your investments.

Not only investors but even distributors are collaborating with fintech startups to offer personalized services to investors leveraging their technologies. All in all, digitalization has helped expand the reach and ease of mutual fund investments significantly.

2. Increase in the Number of SIPs

Systematic investment plans (SIPs) have evolved as the go-to investment mode for investing in mutual funds. The SIP contribution in October 2023 stood at Rs 16,927.86 crores as against Rs 13,041 crores in October 2022. As per AMFI, the total number of SIPs currently stands at about 7.44 crores.

Offering ease of investments and imbibing a disciplined savings habit, SIPs help you stay invested across market cycles and offer the benefit of rupee cost averaging. It means you buy more units when markets are down and more when they are up. This ultimately averages out the investment cost and helps you easily navigate market volatility.

3. Surge in Investments from Smaller Cities

Another interesting trend that has come to the fore is the surge in mutual fund investments from smaller cities. Investors from cities like Pune, Kota, Durgapur, Alwar, etc., are growing quickly and giving tough competition to established ones like Mumbai, Chennai, and Kolkata. Efforts made by mutual fund distributors combined with eye-catching campaigns from AMFI have played a key role in attracting investors from smaller cities.

The initiatives have empowered investors from these regions to navigate the intricacies of mutual fund investments and make investments aligning with their goals. The shift in investor demographics indicates the growing financial literacy and awareness in smaller cities. Investors from these cities increasingly recognize mutual funds' potential as an effective vehicle for wealth creation and achieving long-term financial objectives.

Summing it Up

In recent years, the Indian mutual fund industry has become even more competitive, with new players coming to the fore. Several financial institutions have given regulatory approvals for setting up mutual fund businesses, which will likely present investors with greater choices. The industry is well-poised for growth in the coming days, with small distributors gaining traction and a surge in investments.

FAQs on Recent Trends in Mutual Fund Industry

Rising financial literacy coupled with innovative campaigns by AMFI and a rising culture of savings has propelled the growth of the mutual fund industry.

Automatic diversification, professional management, and liquidity are the major reasons as to why mutual funds are becoming popular in India.

Did you enjoy this article?

0 people liked this article.

What could we have done to make this article better?

Enjoy Free Demat Account Opening
+91 -

personImage
Enjoy Free Demat Account Opening
+91 -