Report Overview

India Mutual Fund Industry Market - Industry Trends & Forecast Report 2028

India Mutual Fund Industry Market is predicted to grow at a CAGR of 22.5% during the forecast period (2022-2028). The rapid expansion of the market is predominantly due to the increase in investments in mutual funds, which allow small and large fund savers to engage in investment plans. The growth of the mutual fund assets market is also fueled by cutting-edge portfolio management services, ease & fair pricing in terms of investments, and the use of digitalized technology. Moreover, developing regions also present huge chances for mutual fund providers to diversify and enhance their current offerings with more cheap and advantageous returns. Furthermore, governmental initiatives and improved support for the market for mutual fund assets are also anticipated to create profitable prospects during the projection period (2022-2028).

Mutual Fund - Overview

A corporation that pools money from several investors and invests it in stocks, bonds, or other assets is known as a mutual fund. The portfolio of a fund refers to all of its holdings, whether they are securities, bonds, or other assets. Shares in the fund, which reflect a portion of these holdings, are owned by each investor. There are various types of mutual funds, including equity or growth schemes, liquid or money market funds, debt or fixed income mutual funds, and balanced funds. Additionally, earnings from bond interest and stock dividends. Nearly all of a mutual fund's annual net income is distributed to investors (in the form of a distribution). A rise in the value of securities is sometimes known as a "capital gain." The majority of funds also distribute these gains to their investors.

India Mutual Fund Industry Market Forecast and Trends

Growth Drivers

Digitalization of Technologies Implementation

Technology like Robo-advisors, artificial intelligence, blockchain, cloud computing, big data & analytics, and others have been adopted by the mutual fund sector at the highest rate. Mutual fund businesses also use this technology to centralize procedures to increase efficiency, make complicated services simple to use, and lower costs and risks for the mutual fund industry. Implementing more integrated and value-added services have aided in achieving client loyalty. Therefore, there is increased deployment and implementation of technologies, which is fueling market expansion, to provide convenient & efficient services and lower operational costs. All these factors boost the growth of the India Mutual Fund Industry Market during the forecast period (2022-2028).

Increased Mutual Fund Investment

One of the elements driving the growth of investments in mutual funds is the increased emphasis on domestic savings, as well as the increase in disposable income and the mobilization and allocation of the income toward beneficial assets. Additionally, it enables small and large fund savers nationwide to take part in investment plans and profit from the expansion of the capital market. Additionally, the market growth was supported by the vast development and standardization of the mutual fund industry's products and services offered, the growing proliferation of a significant number of private sector funds, and regulatory mechanisms.

Rising Government Support and Activities for the Mutual Fund Assets

Several governments, regulatory agencies, and other authorities are expected to boost and develop their existing mutual fund industry. Furthermore, regulatory organizations continue to seek ways to improve market expansion and penetration through collaborations with e-wallets, e-commerce distribution, and other similar platforms. Furthermore, mutual fund distributors in certain locations play an active role and are heavily promoted by their governments. As a result, this element is increasing mutual fund providers' revenue growth by improving the quality and depth of connection with channel partners. Furthermore, growing government support and sophisticated mutual fund efforts are projected to bring attractive prospects to the market in the approaching years.

Restraints

Risk of Over Diversification

One of the primary benefits of a mutual fund is diversification. However, there is always the risk of over-diversity, which can raise a fund's running costs, necessitate more due diligence, and dilute the relative benefits of diversification. Moreover, the value of a mutual fund can change based on market conditions. Furthermore, there are fees associated with professional management of a mutual fund, which is not present when purchasing stocks or assets directly from the market. When purchasing a mutual fund, an investor is required to pay an entry load. Furthermore, when an investor chooses to depart a mutual fund, certain organizations charge an exit fee.

Impact of COVID-19 on India Mutual Fund Industry Market

The COVID-19 pandemic has had a moderate influence on the mutual fund assets market, leading to an increase in company defaults as cash flow position has been severely hindered. Customers are taking advantage of mutual fund offers through online platforms, even though lockdown in certain countries has significantly hindered consumer movement and company disruption across the nation. As a result, during the pandemic, this has become one of the primary growth causes for the mutual fund assets market. SIP collections in the mutual fund industry declined by 4% to INR 96,000 crore in FY 2020-2021 as a result of COVID-19-induced lockdowns. As a result of the pandemic, several investors elected to discontinue their SIPs. The contribution declined for 11 months in a row after peaking at Rs 8,641 crore before breaking through to new highs.

India Mutual Fund Industry Market - By Asset Type

Based on the asset type, the India Mutual Fund Industry Market is segmented into Debt-Oriented Schemes, Equity-Oriented Schemes, Money Market, ETF’s and FOF’s. Among these, debt-oriented schemes account for the largest share in the India Mutual Fund Industry Market. A debt fund (sometimes known as an income fund) is a mutual fund that primarily invests in bonds or other debt assets. Debt funds invest in short- and long-term securities issued by the government, public financial institutions, and corporations, including Treasury bills, government securities, debentures, commercial paper, certificates of deposit, and others. All these factors propel the growth of the India Mutual Fund Industry Market during a forecast period (2022-2028).

India Mutual Fund Industry Market – By Source of Funds

Based on the source of funds, the India Mutual Fund Industry Market is segmented into Banks, Insurance Companies, Retail Investors, Indian Institutional Investors, FIIs and FPIs, and Others. Among these, bank segment holds the largest market share. Banking funds are ideally regarded as a suitable long-term investment alternative in a variety of market scenarios. These funds have provided average annualized returns of more than 17 percent over the last five years. Moreover, mutual fund and insurance subsidiaries help banks to capitalize on their potential by offering specialized, value-added financial services to investors, thereby expanding their customer base. Banks might partner with an MF arm or establish their subsidiaries. Mutual funds can be purchased through any investment account, such as an IRA, which can be opened through a variety of financial organizations, including banks. All these factors boost the growth of the India Mutual Fund Industry Market during the forecast period (2022-2028).

India Mutual Fund Industry Market - By Region

Geographically, the India Mutual Fund Industry Market is segmented into North India, South India, East India, and West India. The western region dominates the market owing to the most economically populated state of Maharashtra. Also, growing development, various sectors, and urbanization in this region offer lucrative growth opportunities for the India Mutual Fund Industry Market during the forecast period (2022-2028).  Moreover, rising digital penetration, smart cities, and faster data speeds all contribute to a shift in asset allocation toward smaller cities and towns. The rising retail contribution via SIPs demonstrates India's degree of digital penetration.

Competitive Landscape

The leading market players in the India Mutual Fund Industry Market are HDFC Mutual Funds, ICICI Prudential Mutual Funds, SBI Mutual Funds, Aditya Birla Sun Life Mutual Funds, UTI Mutual Funds ITC Ltd., Baroda Asset Management India Limited, BNP Paribas Asset Management India Private Limited, BOI AXA Investment Managers Private Limited, Canara Robeco Asset Management Company Limited, DHFL Pramerica Asset Managers Private Limited, DSP Investment Managers Private Limited, Edelweiss Asset Management Limited, and other prominent players.

The India Mutual Fund Industry Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.

Recent Development

• In 2022, HDFC Mutual Fund launched two new fund offers (NFOs): the HDFC NIFTY 100 Index Fund and the HDFC NIFTY 100 Equal Weight Index Fund. According to the fund house, the investments are geared at investors seeking returns that are comparable to the NIFTY 100 Index and NIFTY 100 Equal Weight Index, respectively. As of December 31, 2021, Indian large caps accounted for 68% of the Indian-listed space in terms of market capitalization.

• In 2021, ICICI Prudential Mutual Fund announced the launch of the ICICI Prudential FMCG ETF. Subject to monitoring faults, the service promises to produce returns that roughly match the returns provided by its benchmark Nifty FMCG TRI Index in the same proportions. The fund will be traded on both the BSE and the NSE.

Scope of the Report

By Asset Type

• Debt-Oriented Schemes
• Equity-Oriented Schemes
• Money Market
• ETF’s and FOF’s

By Source Of Funds

• Banks
• Insurance Companies
• Retail Investors
• Indian Institutional Investors
• FIIs and FPIs
• Others

By Region

• North India
• South India
• East India
• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. India Mutual Fund Industry Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Landscape/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. India Mutual Fund Industry Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Asset Type
         1. Debt-Oriented Schemes
         2. Equity-Oriented Schemes
         3. Money Market
         4. ETF’s and FOF’s
      2. By Source Of Funds
         1. Banks
         2. Insurance Companies
         3. Retail Investors
         4. Indian Institutional Investors
         5. FIIs and FPIs
         6. Others
      3. By Region
         1. North India
         2. South India
         3. East India
         4. West India
6. Competitive Landscape
   1. List of Key Players and Their Product Types
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership, etc.)
7. Impact of Covid-19 on India Mutual Fund Industry Market Industry
8. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
   1. HDFC Mutual Funds
   2. ICICI Prudential Mutual Funds
   3. SBI Mutual Funds
   4. Aditya Birla Sun Life Mutual Funds
   5. UTI Mutual Funds ITC Ltd.
   6. Baroda Asset Management India Limited
   7. BNP Paribas Asset Management India Private Limited
   8. BOI AXA Investment Managers Private Limited
   9. Canara Robeco Asset Management Company Limited
   10. DHFL Pramerica Asset Managers Private Limited
   11. DSP Investment Managers Private Limited
   12. Edelweiss Asset Management Limited
   13. Other prominent players

9. Key Strategic Recommendations

*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1        India Mutual Fund Industry Market Segmentation

Figure 2        India Mutual Fund Industry Market Value Chain Analysis

Figure 3        Company Market Share Analysis, 2021

Figure 4        India Mutual Fund Industry Market Size, By Value (USD Million), 2018-2028

Figure 5        India Mutual Fund Industry Market Share, By Asset Type, By Value, 2018-2028

Figure 6        India Mutual Fund Industry Market Share, By Source of Funds, By Value, 2018-2028

Figure 7        India Mutual Fund Industry Market Share, By Region, By Value, 2018-2028

List of Tables

Table 1         India Mutual Fund Industry Market Size, By Asset Type, By Value, 2018-2028           

Table 2         India Mutual Fund Industry Market Size, By Source Of Funds, By Value, 2018-2028   

Table 3         India Mutual Fund Industry Market Size, By Region, By Value, 2018-2028      

Table 4         HDFC Mutual Funds Company Overview                                

Table 5         HDFC Mutual Funds Financial Overview                                 

Table 6         ICICI Prudential Mutual Funds Company Overview                                     

Table 7         ICICI Prudential Mutual Funds Overview                                

Table 8         SBI Mutual Funds Company Overview                                   

Table 9         SBI Mutual Funds Financial Overview                                    

Table 10        Aditya Birla Sun Life Mutual Funds Company Overview                                

Table 11        Aditya Birla Sun Life Mutual Funds Financial Overview                                 

Table 12        UTI Mutual Funds Company Overview                                   

Table 13        UTI Mutual Funds Financial Overview