Mutual benefits

Increasing mutual fund flows is a win-win

The mutual-fund industry crossed the symbolic mark of Rs 50 trillion assets under management (AUM) in December 2023, driven by a strong rally across the equity markets, alongside robust inflows via the systematic investment plan (SIP) route. AUM rose by a whopping 25 per cent with over Rs 1.62 trillion of net inflows into active equity schemes. SIP-linked inflows have hit over Rs 10 trillion over the years. The bulk of the equity MF investment comes from retail investors. The Association of Mutual Funds in India estimates some 42 million individual investors own around 90 per cent of equity mutual