INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Mutual funds have added a staggering Rs 1.24 lakh crore to their asset base in 2018 assisted by consistent increase in SIP flows
and a robust participation of retail investors despite volatile markets.
The asset under management (AUM) of industry grew by 5.54 per cent
or Rs 1.24 lakh crore to Rs 23.61 lakh crore at end of December 2018, up from Rs 22.37 lakh crore at end of December 2017, latest data
available with Association of Mutual Funds in India (Amfi) showed.
The year 2018 also marked sixth consecutive yearly rise in industry's
AUM after a drop in two preceding years.
The pace of growth, however, declined for asset size in 2018 as compared to previous year
The industry saw a surge of 32 per cent in AUM or an addition of over Rs 5.4 lakh crore in 2017.
The ILFS default and consequent blow to
NBFC sector because of credit crunch, exposed mutual funds to ill-liquid debt funds worth lakhs of crores
This coupled with volatile markets could be some of reasons for a slower growth in assets base last year.
Quantum Mutual Fund MD and CEO
Jimmy Patel attributed rise in mutual funds' asset base in 2018 to strong participation of retail investors that continued to remain buoyant
with their SIP investments despite rising crude oil prices, rupee depreciation and stock market volatility.
In addition, markets regulator
Sebi's efforts on investor education as well as Amfi's 'Mutual Fund Sahi Hai' campaign also helped industry, he added.
Fund houses
believe that an uptrend is expected in 2019 too as large amount of flow is expected through SIP (Systematic Investment Plan) route as it
helps in rupee cost averaging and also in investing in a disciplined manner without worrying about market volatility and timing
market.
"Among factors that will help such a move in 2019 is that an ever larger proportion of flow is through SIP which adds to existing
Also, number of folios that are added on a monthly basis continue to be robust indicating that more and more new investors are investing
through mutual funds.
"Increased geographical penetration and technology may also lead to greater participation in MFs," Essel Mutual Fund
