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VOL. 5, ISSUE 3 (2023)
Growth trends of mutual funds in Indian
Authors
Pooja Vernekar, B S Navi
Abstract
A mutual fund is a collection of investor
money that is invested in accordance with predetermined investment goals. It is
a collection of the investor's money. By mutual, we imply that investors both
contribute to and get benefits from the pool. The money is not subject to any
other claims. The mutual fund is a collection of money that investors hold
jointly. The funds thusly gathered will be invested by a mutual fund company in
accordance with the preferences of the investors who established the pool. The
Unit Trust of India was founded in 1964, which marked the beginning of the
Indian mutual fund industry's journey. Recently, there has been quiet growth in
this sector. Both the AUM and the variety of marketed goods have been growing. Average
Assets Under Management (AAUM) of Indian Mutual Fund Industry for the
month of October 2022 stood at ₹ 39,53,209 crore. Assets Under Management (AUM) of
Indian Mutual Fund Industry as on October 31, 2022 stood at ₹ 39,50,323 crore.
The introduction of various innovative products to meet the evolving needs of
Indian investors has been encouraged by the entry of new companies. There are
44 fully established businesses that are operating in this industry as of now. It
was found that institutional investors dominate the Indian mutual fund market.
Overall, the mutual fund industry has 1.26 lakh distributors including
corporate of the total distributors 87% of 1.09 lakh distributors are
individual and 8850 are senior citizens and 7700 are Corporates. It is observed
in the various cases from mobilization of savings to the net inflow that
private sectors have done better than the public sectors at large. The industry
should focus on public sector to increase its operational efficiency in order
to maintain the parity. But Penetration in the market is not complete yet. Only
fraction of Indian population has the knowledge of mutual funds. In India, more
than 50% of the population lacks access to formal banking services. Only 35.23
percent of respondents in India, according to the 2012 World Bank Global
Findex, have an account (either individually or jointly with another person) at
a bank or another formal financial institution. India continues to lag behind
in both formal and informal institutions' savings indicators. This states that
awareness should be increased so that there is more mobilisation of saving
leading to higher capital formation in the market at the same time.
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Pages:21-26
How to cite this article:
Pooja Vernekar, B S Navi "Growth trends of mutual funds in Indian". International Journal of Finance and Commerce, Vol 5, Issue 3, 2023, Pages 21-26
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