Page 15 - Banking Finance May 2022

MUTUAL FUND

Mutual Fund

News

fintech players like Zerodha , Paytm
AUM of domestic funds hit a record Rs. 20 lakh crore
and Orowealth who plan to enter the
Though India's market capitalization has fallen by nearly 8% from the peak, mutual fund space Ramkrishnan be-
the equity value of the domestic mutual funds or the Assets Under Manage- lieves new players expand the market
ment (AUM) hit a record Rs.20 lakh crore in March following sustained in-
and reach out to new potential
flow, according to the NSDL data. This includes equity funds, arbitrage funds,
investors.
equity exposure in balance funds and exchange traded funds (ETFs).
The local funds had the second largest equity AUM at the end of March 2022 Mutual funds add over 3
following foreign portfolio investors (FPIs) with an AUM of Rs 47 lakh crore.
The share of local mutual funds in the country's market capitalization rose crore folios in FY22
by 300 basis points to 8% over the past year. Increasing awareness about mutual
funds, ease of transactions through
The AUM of local equity funds has nearly doubled over the past two years
buoyed by a strong inflow. Indian savers invested over Rs 3 lakh crore in FY22 digitisation and sharp surge in equity
in equity mutual funds through active and passive schemes. The AUM share markets have aided asset management
of domestic funds in the total institutional equities rose by nearly 160 basis companies to add a staggering 3.17
points to 17.4% in March. The total institutional equity AUM at Rs 117.7 lakh crore investor accounts in 2021-22,
crore accounted for nearly half of India's market capitalization. with experts saying the trend is likely
to continue this fiscal as well.
LIC MF aims to be amongst scheme performance and expects This was a significant rise from 2020-
them to start selling their products 21 when 81 lakh accounts (or folios in
top 10 over the next five soon. Currently the fund house has an mutual fund parlance) were opened,
years AUM of Rs 17,817 crore as of March data with the Association of Mutual
2022 and ranks 22 in the 43 player MF Funds in India (AMFI) showed.
LIC Mutual Fund, aims to be amongst
industry.
the top 10 mutual fund houses over a The ongoing financial year too appears
five year period. While the fund house is looking to to be promising in terms of folios as
boost its digital presence to reach out increase in investor accounts will en-
"We want to increase penetration of
to new investors, it has also recently able people to move beyond fixed de-
mutual funds and focus on SIPs. We are
strengthening our team and market opened branches in two tier and three posits and savings accounts, said Priti
positioning," says TS Ramakrishnan, tier centres like Varanasi, Indore, Rathi Gupta, founder of LXME, a finan-
Gurugram, Ludhiana . It will also open cial platform for women.
MD & CEO LIC MF. Ramakrishnan
points out that few big distribution branches in Vijayawada & Noida soon. Market conditions, geopolitical situa-
partners are closely observing their On competition coming from new age tions, inflation rates, financialisation of

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