Mutual Fund Investors made a CAGR return of 14% during ten years of Modi Government

The equity market has grown with an average of nearly 14 per cent YoY since Modi came to power in 2014. During the last ten years, the assets under management (AUM) or asset under management of the Indian mutual fund (MF) industry has grown from Rs 8.25 trillion as of March 31, 2014 to Rs 53.40 trillion as of March 31, 2024 a more than 6-fold increase in a span of 10 years.

With an investor base of 4.21 crore, MFs Industry AUM has surpassed Rs 55 trillion recently. The total number of accounts rose from 3.8 crores ten years back to 17.79 crore as on March 31, 2024.

The number of folios under Equity, Hybrid and Solution Oriented Schemes, wherein the maximum investment is from the retail segment stood at about 14.24 crore. Record Rs 19,271 crore invested in MFs through Systematic Investment Plans (SIP) in March this year.

Over a 10-year period the top 5 large-cap MF schemes have given investors a compounded average yearly return of between 14.7 per cent to 18.17 per cent.

Over the last 10-year, the highest return came from Nippon India's large-cap fund, which has given the highest CAGR average return of 18.17 per cent on a YoY basis.

The top 5 mid-cap funds gave an average return of between 20.2 per cent and 21 per cent, and the top 5 large and midcap funds gave a compounded annual average return of between 16.8 and 22.34 per cent.Invesco India's mid-cap fund gave the highest return, a CAGR of 22.34 per cent, over a 10-year period on YoY basis.

The top 5 small cap funds did wonders and gave a compounded average return over 10 years of between 18.74 per cent and 28 per cent. Nippon India's small cap fund gave a CAGR return of 28 per cent over a 10-year period on a YoY basis.

Even tax saving schemes like ELSS (equity-linked incentive schemes) gave good returns in addition to savings on tax. The top 5 ELSS schemes gave a compounded average return of between 16.9 per cent to 24.7 per cent over a 10-year period.

Investors also get income tax exemption on investments of up to Rs 1.5 lakh in ELSS under Sec 80C of the Income Tax Act.

Investments made in Gold in 2014, gave a return of approximately 97 per cent with a CAGR of 7.2 per cent, whereas the return on Nifty for the same period was 262 per cent with a CAGR of 13.4 per cent, Sensex gave a total return of 255 per cent with a CAGR of 12.6 per cent.

But the return on mid-cap for the same period is 526 per cent with a CAGR of 16.7 per cent.

The Sensex closed above 75K on Wednesday, April 10 a three-fold increase from 25K when Modi came to power in 2014.