The assets under management (AUM) of the mutual fund industry touched an all-time high of Rs 16.46 trillion in December, according to the data from the Association of Mutual Funds in India (AMFI) and expects to cross Rs 20 trillion this year.
This, according to Icra, translates into a compounded annualised growth rate of 18 per cent from Rs 3.26 trillion AUM in March 2007 and is led by the phenomenal growth in SIPs with December alone seeing inflows of Rs 3,973 crore.
"The robust performance of the industry comes on the back of growing investor awareness and increased investments in systematic investment plans (SIPs). Post-demonetisation, interest rates have started declining and can have a positive bearing on the performance of debt-oriented funds," Icra said in a note today.
The industry AUM had crossed Rs 10 trillion in May 2014, and it may reach the important milestone of Rs 20 trillion in 2017, Icra added.
Noting that the equity category saw steady inflows in the year, Icra said fund houses saw net inflow of Rs 10,923 crore in December into equities, of which Rs 10,103 crore were in equity funds. "This is the ninth straight month to witness positive inflows in equity schemes. Steady inflows from SIPs and increasing investor awareness have contributed to this growth," Icra added.
In the current financial year, total mobilisation in equity schemes stood at Rs 51,000 crore and is expected that momentum will continue in the March quarter as investors may opt for tax-saving options like equity linked saving schemes.
As per AMFI data, total mop-up via SIPs in December stood at Rs 3,973 crore. So far this year, industry on average has added about 6.19 lakh SIP accounts every month with the average ticket size being around Rs 3,200 per account.
December saw over 7 lakh new folios addition, taking the total folio count to 5.2 crore, which is 1.5 per cent higher than in November and 10.8 per cent than in March 2016.