India’s Mutual Fund Industry Crosses ₹50 Lakh Crore Milestone

India’s mutual fund industry has hit a big milestone! For the first time ever, in December 2023, the total money managed by these funds crossed Rs 50 lakh crore. 

This is a huge leap from Rs 8 lakh crore in 2013, showing that in just 10 years, the industry grew more than six times. Zerodha, Helios, Jio, and several other companies are about to launch their new mutual funds.

Before this, it took almost 50 years to reach Rs 10 lakh crore, but the jump from Rs 40 lakh crore to Rs 50 lakh crore happened in just over a year!

A key part of this growth is how people are investing regularly through something called SIPs, or Systematic Investment Plans. These are plans where you regularly invest a fixed amount of money into a mutual fund. 

In December, the amount invested through SIPs reached an all-time high of Rs 17,600 crore. The total amount of money in SIPs also crossed Rs 10 lakh crore for the first time.

Interestingly, more people are joining in. In December alone, a record 40.32 lakh new SIP accounts were opened. This is a lot more compared to previous months and years.

Another big part of this growth is the strong performance of stock markets. People are more confident about investing because they see the economy doing well and expect it to continue growing. 

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However, some people also stopped their SIPs. About 20.8 lakh investors took their money out in December. This could be for various reasons like needing the money, not being happy with the fund’s performance, or just because their investment plan ended.

Despite some people taking money out, the mutual fund industry in India is growing fast. This growth is a sign that people have faith in the Indian economy and are getting more comfortable with investing in mutual funds as a way to save and grow their money.

As per experts’ predictions, India might achieve its goal of becoming a $5 trillion economy, especially with the current government’s policies.