Fuelling a Decade of Growth : Insights on the Rise of India Mutual Fund Industry with Yaseen Sahar

Over the past decade, India s mutual fund industry has experienced significant growth, with assets under management (AUM) increasing from ₹8.25 trillion in 2014 to over ₹66 trillion by August 2024. This growth has been driven by factors such as increased investor awareness, a rising middle class, and supportive regulatory policies. Systematic Investment Plans (SIPs) have played a crucial role in boosting retail participation, with SIP inflows reaching ₹23,000 crores per month in July 2024. The mutual fund distribution community has been instrumental in this growth, particularly in Tier 2 and Tier 3 cities, where they have worked to educate and build trust with new investors. Regulatory changes, such as SEBI s categorization of mutual fund schemes in 2017, have also contributed to a more transparent and accessible market. Investors have embraced mutual funds as a means of wealth creation, with a shift from traditional assets like gold and real estate to financial products. Yaseen Sahar, an industry leader with over two decades of experience, has emphasized the importance of financial literacy and education in promoting informed decision-making among investors. Key numbers highlighting the industry s growth include the increase in SIP accounts from 2.6 crore in 2017 to over 6.5 crore today. Looking ahead, Sahar predicts that ESG (Environmental, Social, and Governance) factors and thematic funds will continue to gain traction, with passive investing through index funds and ETFs also expected to grow. To ensure continued trust and growth in a highly competitive landscape, transparency, regular communication, and education are essential. Technology, such as AI-driven tools, can also help personalize investment advice and improve decision-making. In summary, the remarkable growth of India s mutual fund industry over the past decade is a testament to the collective efforts of investors, distributors, and regulators. With trends like ESG investing and the rise of passive funds on the horizon, the potential for continued expansion is

Source: dnaindia.com
Published on 2024-10-05