This is an increase of 33 per cent on an annual basis.
With the passage of time, the way people invest has also changed. Now investing in mutual funds is being done in a big way. According to the Association of Mutual Funds (AMFI) data, the assets under management of mutual funds increased to about Rs 37 lakh crore in September due to increased interest of investors towards systematic investment plans (SIPs). This is an increase of 33 per cent on an annual basis.
According to AMFI, assets under management (AUM) touched Rs 36.74 lakh crore last month, up from Rs 27.6 lakh crore in September 2020. AMFI CEO NS Venkatesh said that the increase in AUM was due to record inflows in SIPs. During this SIP crossed the Rs 10,000 crore mark for the first time. He said that it also shows the confidence of retail investors in mutual funds.
Rapid boom in SIP account
The number of SIP accounts was 43244048 in August which increased to 44897602. At the same time, SIP assets increased from 9923.15 crores to 10351.33 crores. Overall SIP asset was 526883 crores in the month of August which increased to 544976 crores. There was a jump of 89.15 lakh in the industry folios in the first six months of the financial year 2021-22, while a total of 81 lakh new industry folios were added in the financial year 2020-21.
Due to the high returns on long-term investments, mutual funds are considered as one of the best options for many investors. Market Linked Investment option helps an investor to diversify his/her portfolio through various instruments like equity, money market funds, debt funds etc. Additionally, experienced fund managers guide the investors in their decision making. Along with this, ease of investment, transparency and tax saving are some of the other advantages of investing in mutual funds.
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Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.