In Gujarat, aggregate AUMs topped the Rs 2 lakh crore mark in November 2020. Since then, AUMs for equity funds alone have increased by Rs 44,440.65 crore, thanks to sustained inflows of SIP and new inflows of investors attracted by attractive returns.
“This is perhaps the fastest rate at which mutual fund assets under management have grown in Gujarat and a large part of it is due to equity funds. While the net asset value of investments has increased significantly, new inflows have continued due to high returns in the stock markets, ”said Mumukshu Desai, director of a city-based financial advisory firm.
According to AMFI, assets under management of equity amounted to Rs 1.31 lakh crore in September. In March of this year, AUMs for equity MFs first crossed the Rs 1 lakh crore mark in Gujarat.
Analysts said private sector expansion plans had been on hold for a year and a half due to uncertainty over the pandemic.
“Investors had excess funds that were deposited into both equity and debt funds. A number of new funds offering promising and lucrative returns have also led to new investments, ”added Desai.
Financial consultants attributed the swelling in assets under management to new inflows of SIPs as well as the reinvestment of equity earnings in mutual funds.
“The influxes of SIP have continued and this is clear with the number of new demat accounts opened, especially by young people who have become accustomed to saving after the economic uncertainty following the pandemic and the lockdown in 2020. .
While the shares of several companies have generated unprecedented returns, seasoned investors have recorded profits and invested them in mutual funds, ”said Jayesh Vithalani, a financial consultant based in Ahmedabad.