The AUM of the mutual fund industry crossed the Rs 10 lakh crore milestone for the first time in May 2014 and in a short span of almost three years, the size of the AUM had more than doubled and crossed Rs 20 lakh crore for the first time. was done. in August 2017. The size of AUM crossed Rs 30 lakh crore for the first time in November 2020.
The Indian mutual fund space has seen expansion amid the Covid-19 pandemic. Top fund houses have registered a growth of 8-16 per cent in their assets under management (AUM) this year. Indian Mutual Fund market AUM has recently crossed Rs 36 lakh crore. The Average Assets Under Management (AAUM) of the Indian Mutual Fund Industry for the month of August 2021 stood at Rs 36,09,471 crore. The assets under management (AUM) of the Indian mutual fund industry as on August 31, 2021 was Rs 36,59,445 crore.
The Mutual Fund segment as an investment sector has witnessed a huge boom in the last 1.5 years. It is worth noting that mutual funds have given more than 100 percent returns in this rally. Now, when Nifty is above 18,000 level and Sensex has already crossed 61,000, investors are worried whether to book returns or stay invested in such highly volatile market.
According to Ravi Singhal, Vice President, GCL Securities Limited, Mutual Funds are always recommended as one of the best avenues of investment if one wants to invest his money in the security markets and get healthy returns. But it becomes important to approach the fund passively so that both investment and returns are not affected when market conditions change.
Tips to keep your mutual fund portfolio safe in bearish and volatile markets:
- Rebalance Portfolio with Dynamic Asset Allocation (Balanced Advantage) Fund: Dynamic asset helps in mitigating downside risk by diversifying investments. It tracks the performance of all asset classes and narrows allocations from overvalued assets and allocates them at the time of fair pricing.
- Invest through SIP Mode: The SIP method helps in buying more units when the market is down and thus the price averages out.
- Invest through STP instead of lump sum: While investing in the market with lump sum mode, it is always advisable to invest through Systematic Transfer Plan (STP) model. Through STP, the fund is parked in the debt market and invested in the equity market in few tranches, which helps in removing volatility.
- Stay invested in goal-oriented investments: By investing the money for a long term, which means keeping a specific goal in mind irrespective of the current market level, an investor can park the funds in good companies and get good returns from the equity market. Is. Notably, the equity market has never given negative returns in 10 years.
The AUM of the mutual fund industry crossed the Rs 10 lakh crore milestone for the first time in May 2014 and in a short span of almost three years, the size of the AUM had more than doubled and crossed Rs 20 lakh crore for the first time. was done. in August 2017. According to the Association of Mutual Funds in India (AMFI), the AUM size crossed Rs 30 lakh crore for the first time in November 2020.
The mutual fund industry had crossed a milestone of 100 million folios during the month of May 2021. The total number of accounts (or folios as per mutual fund parlance) stood at 10.86 crores (108.6 million) as on August 31, 2021, while the number of folios under equity, hybrid and solution oriented schemes, with maximum investment from retail segment, was around 8.95 crores. (89.5 million) was. According to AMFI.
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