Page 28 - LINKPIN 2022-23

A few years ago, only three major funds more money into stock markets. This trend is
were being offered by all the leading financial expected to continue into 2022 as well with
institutions like HDFC MF and ICICI Prudential no significant changes expected in terms of
MF etc., whereas today there are nearly 50 investment options available on exchanges or
different schemes available with every financial other methods by which investors can invest
institution offering a wide range of products their money into stocks.
under various categories such as equity funds, Conclusion
balanced funds etc., which makes it difficult
for investors to choose from among them, The mutual fund industry in India has grown
However, despite this competition among tremendously over the years. It was only five
mutual funds which has increased manifold years ago that the industry started with around
over the years, their performance has been 200 funds and today, it has grown to more than
consistently good over time and investors have 1000.
benefitted immensely from them. The growth of the mutual fund industry is due

The industry has grown rapidly over the last to the increasing demand for funds by investors.
few years, with a growth rate of almost 40% per With increasing investments in other sectors
year, in 2022, it is expected that this rate will like real estate, gold, and other commodities,
remain at around 30%. people have become more comfortable

The main reason for this growth is the investing in mutual funds.
increase in demand for financial products Many people have also realized that investing
among investors. This has led to an increase in in mutual funds provides them with more
the number of people investing their money in flexibility as compared to traditional investment
mutual funds which have been able to meet this options like bank deposits and fixed deposits.
demand. For example, if you want to make a withdrawal
In addition to this, there is also an increased from your mutual fund account, you can do so
without having to worry about your savings
demand for equity-oriented mutual funds losing value over time because of inflation or
as people become interested in investing interest rates decreasing.

Article by:

Bhavesh Gupta
Dheeraaj Katariya
Gayatri Edake
Mayank Rathi
Sarthak Pardeshi

25 | Linkipn 2022-23