Unclaimed Mutual Fund Money Surges 21% in 2024-25
Here’s a summary of the key takeaways from the provided text about the Indian Mutual Fund industry in 2024-25:
Key Growth & Figures:
* AUM growth: Assets Under Management (AUM) reached ₹53.4 lakh crore by the end of 2024-25, a notable increase from ₹41.3 lakh crore in the previous year.
* Gross Mobilization: ₹137.0 lakh crore was mobilized,a 19.7% increase.
* Net Inflows: Surged to ₹8.2 lakh crore, the highest ever recorded in a financial year (129.8% growth).
* Investor Base: Grew from 4.5 crore to 5.4 crore unique investors.
* New Schemes: increased by 32.8% to 247 schemes.
Challenges & Trends:
* Unclaimed Amounts: Unclaimed dividends rose 26.5% to ₹2,324 crore.Unclaimed redemption amounts reached ₹128 crore. This is largely due to outdated investor contact information.
* Market correction: Weak corporate earnings and valuation concerns led to a correction in mid-cap and small-cap stocks, impacting scheme returns.
* Return Shift: A shift towards moderate performance; more schemes had negative returns (243 in 2024-25 vs. 96 in 2023-24), and fewer schemes exceeded 5% returns.
* Secondary Market Investment: Aggregate net investments in secondary markets doubled to ₹3.9 lakh crore. Equity purchases were ₹4.8 lakh crore, while debt saw net sales of ₹87,461 crore.
Initiatives & Regulations:
* MITRA: The Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) platform was launched to help investors find unclaimed funds.
* Nomination Norms: SEBI revised nomination norms for demat accounts and mutual fund folios to reduce unclaimed assets.
* Investor Awareness: SEBI and AMFI are actively urging investors to update their contact details.