‘Bite-sized SIPs will lead to doubling of MF's AUM to US$ 1.2 trillion (Rs. 100 trillion) by 2030.’
- IBEF
- February 26, 2024
A recent report by Axis Capital predicts that the cumulative impact of systematic investment plans (SIPs) will propel India's mutual fund industry's assets under management (AUM) to US$ 1.2 trillion (Rs. 100 trillion) by 2030. India's mutual fund sector reached a significant milestone, doubling its AUM to US$ 602 billion (Rs. 50 trillion) by December 2023, achieved in just four years. This growth trajectory contrasts with the previous five-year period, which saw the industry doubling its AUM from US$ 144 billion (Rs. 12 trillion) to US$ 301 billion (Rs. 25 trillion). The report anticipates a further surge in retail participation, driven by increasing savings rates.
Axis Capital analysts Mr. Praveen Agarwal, Mr. Amit Jain, and Mr. Shailesh Prasad emphasize the substantial opportunity ahead, noting that mutual fund penetration stands at only 15% of GDP, well below the global average of 74%. Equity funds dominate the industry, accounting for 56% of the total AUM as of December 2023, a significant increase from 30% in FY16.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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