The MF industry continued to make new highs on multiple counts in 2022, riding a shift in the preference of Indian investors for traditional debt products such as fixed deposits.

Among others, the assets under management (AUM) of the industry crossed a record Rs 40 lakh crore. The number of folios or accounts, a proxy for investors, also hit a record high, just shy of 14 crore. Further, systematic investment plan (SIP) accounts were at a record 6.05 crore as of November 2022.

MF penetration also increased, catalysed by incentivisation and efficient use of technology.

The industry’s share of household savings increased to nearly 10%¹ in March 2022 from ~7% in June 2018. And as of end-March 2022, B-30 (beyond top 30) cities accounted for nearly 27%² of the industry assets.

That said, there is plenty of headroom for growth, and more needs to be done to achieve sustained and inclusive development of the industry. A look at the key trends reveals the imperatives.

¹ Outstanding position of financial assets and liabilities of households, RBI
² AMFI