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India Mutual Fund Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 130 Pages
  • June 2022
  • Region: India
  • Mordor Intelligence
  • ID: 5530231
UP TO OFF until Sep 30th 2023
As a result of COVID-19-induced lockdowns, the mutual fund industry's SIP collections fell by 4% to Rs 96,000 crore in the 2020-21 fiscal year, resulting in income uncertainty. Many investors chose to halt their SIPs as a result of the coronavirus epidemic, which resulted in lockdowns in March 2020 and raised income uncertainty. The decline in SIP inflows after March 2020 demonstrated this. From a peak of Rs 8,641 crore, the contribution fell for 11 months in a row before breaking through to new highs.

The Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the month of February 2022 stood at ₹ 38,56,140 crore. The Industry’s AUM had crossed the milestone of ₹10 Trillion (₹10 Lakh Crore) for the first time in May 2014 and in a short span of about three years, the AUM size had increased more than two folds and crossed ₹ 20 trillion (₹20 Lakh Crore) for the first time in August 2017. The AUM size crossed ₹ 30 trillion (₹30 Lakh Crore) for the first time in November 2020. The Industry AUM stood at ₹37.56 Trillion (₹ 37.56 Lakh Crore) as on February 28, 2022.

Digital penetration, government targeting smart cities and increased data speeds are also facilitating the drift of asset share towards smaller cities and towns. Increased retail contribution through SIPs shows the power of digital penetration in India.

The total number of accounts (or folios as per mutual fund parlance) as on February 28, 2022 stood at 12.61 crore (126.1 million).

Key Market Trends

Growing in mutual funds Assets

Strong performance by the equity markets and net inflows to equity schemes led to an increase in the assets size of the mutual fund (MF) industry. For the quarter ended December 31, 2021, the average assets under management (AAUM) of the industry stood at Rs 36.17 trillion -- growth of nearly 30% over a year.

The value of assets held by individual investors in mutual funds increased from Rs.17.18 lac cr in February 2021 to Rs. 21.02 lac cr in February 2022, an increase of 22.32%. The value of Institutional assets has increased from Rs.15.11 lac cr in February 2021 to Rs.17.54 lac cr in February 2022 an increase of 16.08%.

Mutual Fund SIP grows at new peak

Because of the large number of new first-time investors entering the market and the simplicity of registering SIPs through online fintech portals, the number of SIPs and monthly collections have increased, but the average ticket value per SIP has decreased. In December 2021, the average SIP ticket size fell to Rs 2303 per SIP, down from Rs 3313 in December 2017. Monthly SIP receipts, on the other hand, increased by 77% to Rs 11,005 crore in the same period, compared to Rs 6222 crore in December 2017.

According to distributors, the number of SIPs has increased by 41% in the last year, reaching 4.91 crore running accounts from 3.47 crore accounts, as many new investors have entered the market.

Competitive Landscape

The report includes an overview of MF companies operating across India and within one or a few other countries. We wish to present detailed profiling of a few major companies which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players dominating the market are listed below.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.1.1 A Brief on Indian Economy And Asset Management Industry in India
4.1.2 India Mutual Fund Industry Size - AuMs over the years
4.1.3 A Brief on Geographical Categorization (T30, B30, etc) of Indian Mutual Fund Landscape
4.2 Insights on Various Types of Schemes or Funds Offered in Indian Mutual Fund Industry
4.3 Prominence of SIPs as a Tool of Investment in Mutual Funds in India
4.4 A brief on Regulatory Environment
4.4.1 Regulatory Bodies Governing The Industry
4.4.2 Indsutry Policies Affecting The Mutual Funds Schemes
4.4.3 Notable Reforms in Light of Macro Economic Factors And Incidents like IL&FS Collapse
4.5 Technological Innovations Shaping The Industry
4.5.1 Trends of Gross Inflows - Physical Mode Vs Digital Mode
4.5.2 Technologies (like AI, ML, RPA) That Are Changing The Ecosystem
4.5.3 Fintechs Inflencing The Mutual Funds Industry in India
4.6 Market Drivers
4.6.1 Rising Awareness - Growing Investor Base
4.6.2 Rising Share of Financial Savings In Total Household Savings
4.7 Market Restraints
4.8 Value Chain / Supply Chain Analysis
4.9 Porters 5 Force Analysis
4.9.1 Threat of New Entrants
4.9.2 Bargaining Power of Buyers/Consumers
4.9.3 Bargaining Power of Suppliers
4.9.4 Threat of Substitute Products
4.9.5 Intensity of Competitive Rivalry
4.10 Impact of COVID 19 on the market
5.1 By Asset Class/Scheme Type
5.1.1 Debt Oriented Schemes
5.1.2 Equity Oriented Schemes
5.1.3 Money Market
5.1.4 ETFs & FoFs
5.2 By Source of Funds
5.2.1 Banks Sponsored
5.2.2 Insurance Companies
5.2.3 Retail Investors
5.2.4 Indian Institutional Investors
5.2.5 FIIs, FPIs
5.2.6 Other Source of Funds
6.1 Market Competition Overview (Market Concentration And M&A Deals)
6.2 Company Profiles
6.2.1 SBI Mutual Fund
6.2.2 HDFC Mutual Fund
6.2.3 ICICI Prudential Mutual Fund
6.2.4 Reliance Mutual Fund
6.2.5 Aditya Birla Sun Life Mutual Fund
6.2.6 DSP BlackRock Mutual Fund
6.2.7 Kotak Mutual Fund
6.2.8 IDFC Mutual Fund
6.2.9 Tata Mutual Fund
6.2.10 Invesco Mutual Fund
6.2.11 Sundaram Mutual Fund*

Companies Mentioned

A selection of companies mentioned in this report includes:

  • SBI Mutual Fund
  • HDFC Mutual Fund
  • ICICI Prudential Mutual Fund
  • Reliance Mutual Fund
  • Aditya Birla Sun Life Mutual Fund
  • DSP BlackRock Mutual Fund
  • Kotak Mutual Fund
  • IDFC Mutual Fund
  • Tata Mutual Fund
  • Invesco Mutual Fund
  • Sundaram Mutual Fund*