Year Ender: Mutual fund industry's AUM surges over 500% in a decade

Indian mutual fund industry's assets under management (AUM) saw significant growth over the last decade, as it increased by a whopping 524 per cent to 68.08 lakh crore in November 2024 from 10.9 lakh crore in November 2014.

Rural and semi-urban areas now account for 50 per cent of the total SIP accounts in the country. Meanwhile, AUM growth in B-30 (Beyond 30 cities) outpaced the top-30 cities during this period.

According to data from the Association of Mutual Funds in India (AMFI), the AUM of all MF schemes increased by more than Rs 17 lakh crore this year.

The mutual fund industry's AUM has increased by more than Rs 37 lakh crore in the last four years.

AUM increased by Rs 11 lakh crore in 2023, Rs 2.65 lakh crore in 2022, and about Rs 7 lakh crore in 2021.

Apart from this, the number of folios at the end of November 2024 was 22.02 crore.

Apart from this, a number of demat accounts have also surged over the last 10 years.

As of August 2024, more than 17.10 crore demat accounts were opened. It was 2.3 core in FY14. Represent a jump of over 650 per cent during this period.

Since 2021, on average, 3 crore new demat accounts added every year.

According to SBI Research, "India is seeing at least 30 million new demat accounts being opened every year since 2021, and nearly every one in four is now a women investor, indicating an increasing prevalence of using capital market as a channel of financialisation of savings."

“This year, the number of new demat accounts may cross the 40 million mark,” said Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI, adding that apart from a few states, the participation of women increased more than national average in FY25 as compared to FY22.

In the last 10 years, funds mobilised by Indian companies from capital markets has increased more than 10-fold, from Rs 12,068 crore in FY14 to Rs 1.21 lakh crore in FY25 (till October).
In FY25 (till October), a total of Rs 1.21 lakh crore of capital was raised from equity markets from 302 issues.

“The NSE market capitalisation has increased by more than 6x to Rs 441 lakh crore in FY25 (so far) as compared to FY14.

“Owing to this, the average trade size in the equity cash segment has increased from Rs 19,460 in FY14 to Rs 30,742 in FY25 (so far),” the SBI Research report mentioned.