Mutual fund statistics
The total AUM of the Indian mutual fund industry as of December 31, 2023, stood at approximately ₹50.78 trillion (≈US$600 billion).
- According to SEBI, during FY 2022–23, 73% of mutual fund units were redeemed within 2 years of investment; only around 3% remained invested for more than 5 years.
- Mutual funds attracted about 6% of household savings in FY2023 per RBI analyses, with most household savings still parked in bank deposits and insurance products.
Mutual Fund Units Redeemed Data
(Holding period vs units redeemed in FY22 and FY23)
- 0–1 years: FY22 = 56.83%, FY23 = 50.11%
- 1–2 years: FY22 = 15.14%, FY23 = 23.04%
- 2–3 years: FY22 = 5.03%, FY23 = 9.81%
- 3–5 years: FY22 = 20.41%, FY23 = 13.96%
- More than 5 years: FY22 = 2.59%, FY23 = 3.09%
Mutual fund category breakup
- AUM of Equity funds – ₹20.33 lakh crore (US$240 billion) (Nov 2023).
- AUM of Hybrid funds – ₹6.90 lakh crore (US$82 billion) (Jan 2024).
- AUM of Debt funds – ₹11.97 trillion (US$140 billion) (Mar 2020).
Controversies
The mutual fund industry in India has experienced a number of stress events and controversies that impacted investors and prompted regulatory responses.
2020 Franklin Templeton Mutual Fund fiasco
In April 2020 Franklin Templeton India wound up six credit funds holding ~US$4 billion of assets citing liquidity issues amid the COVID-19 pandemic. SEBI later investigated and issued orders imposing restrictions and penalties. The action caused investor panic and litigation.
Reliance Mutual Fund
In 2019, debt schemes managed by Reliance Mutual Fund faced liquidity strain due to exposure to troubled borrowers, causing significant redemptions and forced asset sales.
IL&FS crisis and impact
The 2018 IL&FS defaults triggered downgrades and liquidity issues across funds with exposure to its paper. Net asset values (NAVs) of affected funds were marked down and regulatory measures were brought in to limit issuer exposure.
Amtek Auto Impact
Several funds, including some run by JP Morgan Asset Management India, were affected by Amtek Auto's default in 2015, forcing temporary suspension of redemptions and portfolio adjustments.
2001 UTI Mutual Fund (Unit Trust of India) fiasco
UTI suffered major redemption pressures in 2001 associated with wider market events (including scams and sharp price falls) and was subsequently restructured with government intervention.
DHFL crisis and related impacts
The Dewan Housing Finance Corporation Limited (DHFL) default in 2019 affected many mutual funds with exposure to DHFL securities; downgrades, markdowns and regulatory scrutiny followed.
Yes Mutual Fund
The Yes Bank crisis of 2019–2020 also led to write-downs and liquidity stress in schemes that held Yes Bank debt, affecting investor returns across multiple schemes.
Market segment
Mutual funds in India operate across multiple market segments including equity, debt and hybrid products; there are specialized schemes like ELSS for tax saving, index funds, and passively managed funds.
Average assets under management
The industry AUM data and averages vary by category and are published periodically by industry bodies and regulators such as AMFI and SEBI.
Mutual Fund Acquisitions
Examples of acquisitions and structural changes in the Indian mutual fund industry (sample table):
| Seller | Acquired by | Year |
|---|---|---|
| XYZ AMC | ABC AMC | 2018 |
| Old Fund House | New Asset Manager | 2020 |
| Sample Investments Ltd. | Global Asset MGMT | 2022 |
(Note: the above table is an illustrative recreation. For the live Wikipedia page’s acquisition list and exact rows, consult the source.) :contentReference[oaicite:2]{index=2}