Page 145 - Abhivruddhi

The previous peak in this industry was ₹4.80 trillion which was
witnessed in 2017, followed by ₹4.5 trillion in 2020, the gain in the
industry accounted for22% in 2021 compared with 17% in 2020. The
reports shared by CRISIL highlighted the change in strategic pattern of
investors as year 2020 investors preferred debt-oriented mutual funds
whereas in 2021 witnessed equity-oriented mutual funds cornering the
bulk.
The tremendous growth of Indian equity market was relished by the
investors through equity-oriented mutual funds in the 2021.It has been
observed that investors put their big chunk of investible funds in equity
oriented funds, and without taking high risk of entering through equity
route, they have generated high return on mutual funds due to the strong
gains in the underlying equity market. The net inflow of Rs.91000 crores
has been seen in equity mutual funds whereas passive funds got ₹1.14
trillion and hybrid funds ₹1.02 trillion.
In 2021, the assets of Exchange-traded funds increased to surpass liquid
funds as the largest MF category, the assets of liquid funds were closed in
2021 with ₹3.61 trillion whereas the assets for ETF was closed with assets
of ₹3.84 trillion . The liquid funds failed to generate high returns due to
low interest rate, which made liquid funds to be less attractive for the
investors with high risk appetite and high level of expected returns on
investment.
The mutual fund industry reported net inflows of ₹1.14 trillion in 2021
through systematic investment plans (SIPs), crossing the ₹1 trillion mark
for the first time.In November 2021. SIP crossed the the ₹11,000-crore
mark for the first time and in December it touched record breaking
monthly inflow high of ₹11,300 crore.

Share of AUM – Share of AUM –
Category
December 2020 December 2021
Liquid/Money funds 17.7% 15.3%
Debt oriented funds 33.2% 25.4%
Equity oriented funds 40.4% 48.2%
ETF and FOFs 8.7% 11.0%

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