India’s Leading BFSI and FinTech Companies 2022

24 The mutual fund segment witnessed significantly lower gross resource mobilization as well as redemption in FY21 as compared to FY20. Gross resource mobilization almost halved to ` 86 trillion in FY21 from the previous year. However, redemptions also declined by 55% to ` 84 trillion, which led net inflows to increase by 146% to ` 2.1 trillion in FY21. With this, the assets under management (AUM) of mutual fund industry grew by 41% to ` 31.4 trillion in FY21 and further to ` 38 trillion in FY22 (upto end-January 2022). The expansion in AUM in FY21 and FY22 has been largely driven by the rise in asset base of equity-oriented schemes. The share of equity-oriented schemes in the asset base has now increased to 48.6% in January 2022 up from 40.7% in January 2021. On the other hand, the share of debt-oriented schemes in the asset base fell to 24.6% in January 2022 from 33.1% in January 2021. This can be ascribed to the already lower interest rate regime and the likelihood of hike in policy rates going forward. In terms of investor profile, institutional investors dominate the debt-oriented, liquid/money market, Exchange Traded Fund (ETF) and Fund of Funds schemes, while individual investors dominate in equity-oriented schemes Assets under Management of Mutual Fund industry have grown steadily 21.4 23.8 22.3 31. 4 38. 0 -10 0 10 20 30 40 50 0 10 20 30 40 FY18 FY19 FY20 FY21 FY22 % y-o-y growth ` trillion AU M % y- o- y growth Data for FY22 pertains to January 31, 2022 Source: AMFI Key Trends Rapid expansion of ESG (Environmental, Social, Governance) funds: Asset Management Companies (AMCs) have been launching equity schemes as well as Exchange Traded Funds (ETFs) and ETF Fund of Funds in ESG space. As on October 31, 2021, there were 11 mutual fund schemes in India having ESG as their theme with AUM of over ` 130 bn. Growing penetration mutual funds: The growing popularity of mutual fund route for the portfolio diversification, the bull run in the equities market and investor awareness initiatives in the B-30 cities has led to increased penetration of mutual funds. This is also reflected in the addition of on an average 2.3 mn new investor folios every month with the domestic mutual fund industry. MUTUAL FUNDS Dun & Bradstreet