Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities such as stocks, bonds, and money market instruments.
The mutual fund is managed by a professional fund manager who uses the pooled money to buy and sell securities to achieve the investment objective of the fund. Investors buy units of the mutual fund and earn returns in proportion to their investment. Mutual funds offer several benefits such as diversification, professional management, liquidity, and flexibility. They are suitable for investors who want to invest in the stock market but do not have the time, knowledge, or resources to invest directly. Mutual funds are regulated by the Securities and Exchange Board of India (SEBI) to ensure transparency and protect the interests of investors.
As of August 2021, the size of the Indian mutual fund industry was around Rs. 34.2 lakh crore (approximately $460 billion USD), according to data from the Association of Mutual Funds in India (AMFI). The mutual fund industry has been growing steadily over the past few years, driven by factors such as rising investor awareness, increasing digitization, and favorable regulatory changes. Equity mutual funds have been the primary driver of growth, accounting for more than 40% of the total assets under management (AUM) of the industry. Debt funds and hybrid funds are also popular among investors. The Indian mutual fund industry offers a wide range of investment options to investors to cater to their diverse investment needs and goals.
Here are some of the top mutual fund companies based on their assets under management (AUM) as of August 2021:
- HDFC Mutual Fund
- ICICI Prudential Mutual Fund
- SBI Mutual Fund
- Aditya Birla Sun Life Mutual Fund
- Nippon India Mutual Fund
- UTI Mutual Fund
- Kotak Mahindra Mutual Fund
- Axis Mutual Fund
- Franklin Templeton Mutual Fund
- IDFC Mutual Fund
These mutual fund companies offer a range of investment options to investors across various categories, such as equity, debt, hybrid, and solution-oriented funds. It’s important to note that past performance is not a guarantee of future returns, and investors should always conduct their due diligence before making any investment decisions.