Mutual fund industry AUM rises 5.7% in 2022: Amfi

The Assets Under Management (AUM) of the mutual fund industry rose by 5.7% to a total of ₹39.88 lakh crore in 2022, data from the Association of Mutual Fund Industry (Amfi) showed

The mutual fund industry added ₹2.2 lakh crore to its asset base in 2022, driven by consistent monthly increase in SIP (Systematic Investment Plan) flows.

The Assets Under Management (AUM) of the mutual fund industry rose by 5.7%, or ₹2.2 lakh crore, to a total of ₹39.88 lakh crore in 2022, data from the Association of Mutual Fund Industry (Amfi) showed on Tuesday.

This was way lower than a surge of nearly 22% or an increase of close to ₹7 lakh crore in the asset base to ₹37.72 lakh crore in 2021.

“The industry grew at a slower pace in 2022 due to uncertainty in stock markets, and changing interest rate scenarios affecting the business environment at large. Understandably, investors have been in step with these changes by reallocating their investments between equity, debt and hybrid schemes,” Gopal Kavalireddi, Head of Research at FYERS, said.

While, the growth of 42-player mutual fund space in 2021 was mainly braced by a rally in the stock markets.

The increase in asset base in 2022 is mostly the result of advanced SIP flows, which touched ₹13,000 crore for the second time in a row in November. Besides, industry body Amfi has played an important role in driving awareness towards mutual funds among retail investors, Akhil Chaturvedi, Chief Business Officer of Motilal Ostwal AMC, said.

During the calendar year, SIP inflows averaged more than ₹12,500 crore per month, helping investors to stay in the stock market and benefit from Rupee cost averaging. The steady inflow suggests resilience in domestic inflows, which have been strong counterbalance to FPIs (Foreign Portfolio Investors) selling.