Deloitte Insights on Mutual Fund Industry Analysis in India (2024)

FAQs

Deloitte Insights on Mutual Fund Industry Analysis in India? ›

Mutual funds face a double challenge – firstly, increasing their share of the pie in the urban markets that have seen crowding of products and vendors, and secondly, capturing the attention of investors in sub-urban and rural markets that have been largely averse to complex financial instruments, and are often ...

The Indian mutual fund industry is expected to become Rs 100 lakh crore in valuation by 2030, according to a report by Axis Capital. India's mutual fund industry has doubled its AUM in just four years to reach a landmark Rs 50 lakh crore in December 2023.

The Indian mutual fund industry definitely ended 2023 on a high. The industry's total assets under management (AUM) breached the Rs 50-lakh crore mark for the first time. This was no doubt a big milestone, but what cheered the industry even more was the time it had taken to reach this milestone.

Current State Of The Mutual Fund Industry In India

Assets Under Management (AUM) in the mutual fund industry increased by 41% in the fiscal year 2021. The AUM was worth Rs 33.67 trillion as of June 30, 2021. The bond funds were the most appealing in fiscal 2021, with net inflows of Rs 3,299 crore.

Average assets under management (AAUM) of all mutual fund schemes combined, touched a life-time high of ₹55.01 Trillion as of the close of March 2024, higher than the AAUM of ₹54.52 Trillion as of the close of February 2024, ₹52.89 Trillion as of the close of January 2024, and ₹51.09 Trillion as of the close of ...

There is no better time to start investing. It is very difficult to time the markets and although the markets are due for a correction, it would not be wise to wait further. Also, when it comes to SIPs, there is not much merit in timing the markets. We would suggest you invest in different mutual fund categories.

There are five main indicators of investment risk that apply to the analysis of stocks, bonds, and mutual fund portfolios. They are alpha, beta, standard deviation, r-squared, and the Sharpe ratio.

What is CAGR in mutual funds? ›

CAGR stands for Compound Annual Growth Rate. It is a way to measure how an investment or business has grown over a specific period of time. It takes into account the effect of compounding, which means that the growth builds upon itself.

Common technical indicators that can help evaluate a mutual fund as a good or bad investment include trendlines, moving averages, the relative strength index (RSI), support and resistance levels, and chart formations.

The average ten-year return on mutual funds in India is 20%. Mutual fund performance is directly correlated with market dynamics.

There were 12 million direct plan investment accounts in MFs in March 2020 and increased by 48 per cent to 18 million by the end of March 2021. Alongside, active investment accounts in regular plans went up 2.8 per cent to 79.4 million.

According to Ashwini Kumar, Head Market Data of ICRA Analytics, mutual fund penetration has been steadily improving in smaller towns and cities backed by increasing awareness among people, the growing interest among retail investors for investing in equities through the MF route and the opening up of branches of AMCs ( ...

o The Indian MF industry is expected to reach USD 0.66 trillion by 2024 and grow at a CAGR of over 18% to reach USD 1.51 trillion by 2029, at a CAGR of greater than 18% during the forecast period (2024-2029). Mutual Funds are a big part of India's financial services industry.

The AUM size crossed ₹ 30 trillion (₹30 Lakh Crore) for the first time in November 2020. The Industry AUM stood at ₹53.40 Trillion (₹ 53.40 Lakh Crore) as on March 31, 2024. The mutual fund industry has crossed a milestone of 10 crore folios during the month of May 2021.

Prediction 4: Mega managers will account for 65% of US mutual fund AUM by 2030, up from 55% in 2020. Prediction 5: Assets under management (AUM) growth in US mutual funds will grow to 6% (CAGR) between 2022 and 2030, reaching $38 trillion, slowing from 7.4% between 2010 and 2022.

Market outlook and future prospects

Looking ahead, the Indian mutual fund industry stands poised for robust growth. Fueled by the financialization of savings, increasing financial awareness, and the growing preference for financial assets among investors, the industry remains resilient.