Savings finance is on the rise in India, and assets under management will grow to three-quarters of the gross domestic product (AUM) in the next five years, he reports. PTI, Citing the CRISIL report.
According to the report, the amount under management (AUM) will increase ₹315 million in FY27 from ₹135 million in FY22
The report added that policymakers have long been looking for growth in the financing of savings – shifting savings from physical assets like gold and real estate to mutual funds, stocks, exchanges, etc.
According to the report, savings financialization over the past few years can be attributed to higher liquidity on the back of debt and equity markets. He warned that prolonged disruptions or liquidity conditions in the financial markets could affect the investor experience.
“A lot has happened in the investment landscape over the past five financial years, but the industry has barely scratched the surface considering the potential across categories,” said Ashish Vora, head of markets at CRISIL, Intelligence & Analytics.
Meanwhile, the assets under management (AUM) in the domestic mutual fund industry has surpassed ₹40 million for the first time in November.
In November, net inflows into equity mutual funds fell by 75 percent month-on-month (MoM) for ₹2,258 crores, compared to the revenue ₹9,390 crore in October.
Inflows through Strategic Investment Plans (SIPs) were at an all-time high. ₹13,307 crores in November.
Here we explain the difference between stocks, mutual funds and ETFs.
First published: December 15, 2022, 11:08 am IST