Mutual fund assets hit record Rs 16.11 trillion in September quarter

Mutual fund industry's asset base surged by 12 per cent to a record high of Rs 16.11 lakh crore in July-September quarter helped by strong participation from retail investors and robust inflow in equity schemes.

The industry, comprising 42 active players, witnessed increase in average assets under management ( AUM) to Rs 16.11 lakh crore in three months ended September 30, 2016, from the previous high of Rs 14.41 lakh crore during April-June quarter, data available with industry body Association of Mutual Fund Industry (AMFI) showed.

Among the top five players, ICICI Prudential MF led the pack with asset base of Rs 2,15,986 crore (excluding Fund of Funds) followed by HDFC MF (Rs 2,13,086 crore), Reliance MF (Rs 1,83,129 crore), Birla Sun Life MF (Rs 1,68,881 crore) and SBI MF (Rs 1,31,554 crore).

Growing participation from retail investors, huge inflows in equity schemes led to increase in the industry's asset base, market experts said.

In addition, inflows into systematic investment plans (SIPs) for equity schemes have been rising.

"Inflow in equities continue to grow, which has been case for last two years. Individual investors have started using SIPs, which is a good way to invest in volatile market conditions as it helps in reducing the risk of investing in one time. The investors should continue with their SIPs even though market consolidates in future," Harshad Chetanwala Head Customer Delight at Quantum MF said.

SIP is an investment vehicle offered by mutual funds to investors, allowing them to invest using small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly.

The asset base of mutual fund industry has been growing in the last few years. In fact, AUM has increased from Rs 3.26 lakh crore as March 31, 2007 to Rs 16.11 lakh crore at the end of September 30, 2016, a five-fold growth in a span of less than 10 years.

The industry's asset base had crossed the milestone of Rs 10 lakh crore for the first time in May 2014 and in a short span of two years, the AUM size has crossed Rs 16 lakh crore.

Besides, total number of accounts or folios is close to 5 crore, while the number of folios under equity, equity-linked saving schemes and balanced schemes, wherein the maximum investment is from retail segment is nearly 4 crore.