8.86 lakh SIP accounts added every month

The Average Asset Under Management (AAUM) of Mutual Funds industry has reached Rs. 21.79 lakh crores in October 2017. The AUM increased from Rs. 19.92 lakh crore in June 2017 to Rs. 22 lakh crore in October 2017, indicating a 9 per cent growth in the Mutual Fund Industry, showed data released by the Association of Mutual Funds in India (AMFI).
 
The AAUM is the average assets held by the industry in an entire month.
 
The exponential growth in the mutual fund industry is due to higher inflows in balanced funds, arbitrage funds and equity funds through Systematic investment plans (SIP). As per the AMFIs data, the monthly inflow in MFs reached an all-time high of Rs. 5,621 crore and is Rs. 35,000 crore in the last seven months through SIP.
 
Moreover, on an average, 8.86 lakh SIP accounts were added each month during the FY2017-18, with an average SIP ticket size of about Rs. 3,250. This means that not only higher income investors are buying MF, but lower and middle-income people are also subscribing to the mutual fund, thus explaining the exponential growth.
 
AMFI data also shows that the industry has received net inflows of Rs. 23,574 crore in equity funds including pure equity funds, balanced, ELSS and equity ETFs in October 2017. The total equity AUM has reached by Rs. 66,000 crore to reach a record high at Rs. 9.16 lakh crore in October. The AUM size has doubled to Rs. 20 lakh crore in October 2017 as compared to Rs. 10 lakh crore in May 2014, which is a great milestone achieved by the industry in merely three years.
 
Also, the total number of MF accounts as on October 2017 is 6.32 crore, which is nearly 6 per cent of the total population in India.