Mutual funds beyond returns

They have an important role in improving corporate governance and deepening the corporate bond market

Ajay Tyagi
Last Updated at March 1, 2023 22:32 IST

The Indian mutual fund industry has been a success story in inculcating a culture of capital investment across the country. The industry got a further boost in recent years. The low interest rates kept by the Reserve Bank of India (RBI) for over two-and-a-half years after the onset of the pandemic in March 2020, resulted in negative real returns from bank deposits, and pushed savers to become investors in the capital markets. A large proportion of this investment came through the mutual fund (MF) route. To have some perspective, the assets under management (AUM) of MFs, which were Rs 8.25 trillion as of April 1, 2014, grew to Rs 39.89 trillion by December 31, 2022 — an increase of 383 per cent. The growing heft of MFs in the financial sector can be gauged by the fact that their AUM stood at about 30 per cent of the total outstanding bank loans as of December 31, 2022.

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

MONTHLY

₹ 249

Select

ANNUAL

₹ 1799

Select

Best Offer

SMART ANNUAL

₹ 1499

₹ 1799

Opt for auto renewal and save Rs 300

Select

What you get on Business Standard Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Pick your 5 favourite companies, get a daily email with all news updates on them.
26 years of website archives.
Preferential invites to Business Standard events.