New Delhi, Jan 8 (IANS): In a significant testimony to the robust growth and resilience of the Indian mutual fund industry, the Association of Mutual Funds in India (AMFI) announced surpassing Rs 50 lakh crore of assets undermManagement (AUM), a remarkable milestone achieved by the mutual fund (MF) sector.

This noteworthy achievement comes against the backdrop of India growth story, highlighting the MF industry's ability win investor trust by providing low-cost, long-term-oriented, wealth creation avenues.

The focus of Prime Minister Narendra Modi on enhancing economic growth through heightened investments and initiatives aimed at revitalising the country's economy post COVID, coupled with Finance Minister Nirmala Sitharaman’s push for financialisation of savings and financial inclusion has led to many first time mutual fund investors joining the fold and contributing to surge in mutual fund investments, the AMFI said.

The number of unique mutual fund investors more than doubled over the last five years from 1.91 crore in December 2018 to 4.21 crore in December 2023.

Commenting on the milestone, AMFI Chairman Navneet Munot said: "We are elated to announce the achievement of Rs 50 lakh crore AUM, which is a testament to the trust that investors place in the Indian mutual fund Industry. The mutual fund industry is geared up for the next growth milestone of Rs 100 lakh crore AUM and 10 crore investors, which we are sure will be achieved sooner than expected as the industry has shifted gears to accelerate distribution outreach leveraging technology across the value chain."

AMFI Chief Executive Venkat Chalasani said: "While the MF industry took almost 50 years to build the first Rs 10 lakh crore of AUM, the last Rs 10 lakh crore, from Rs 40 lakh crore to Rs 50 lakh crore was amassed in just over a year. The entire mutual fund industry in India including the AMCs and the regulator have put in focused efforts to reach investors across the country with support from the MF distributors."

The Indian mutual fund industry has witnessed sustained growth in the recent years, driven by factors such as increasing financial literacy, regulatory reforms, and a shift towards SIPs. The monthly gross SIP inflows, which was around Rs 8,000 crore in FY20, have now scaled up to an all-time high of Rs 17,610 crore in December 2023 with cumulative inflows through SIPs alone crossing Rs 1,41,000 crore.

The SIP AUM as at the end of December 2023 touched Rs 10 Lakh crore, which is another significant milestone.