If you scan the list of wealthy people globally and domestically, you will undoubtedly find most of them are owners of businesses that are being managed successfully. However, not everyone can become a successful businessman to become wealthy or create wealth. However, one can be a partner to a growing and successful business by becoming a shareholder of a company. For naive investors investing in the right kind of stocks is like a walk through a minefield – a wrong step or selection could erode your wealth instead of creating it. Hence, the best way is to get the help of professionals.
For such investors, investing through mutual funds is a great way to build wealth. You get different options and can select the right combination based on your risk appetite to invest. Investors in India are adopting this route to create wealth. This is reflected in the rise of average assets under management (AAUM) of the Indian mutual fund industry. The assets under management (AUM) of the domestic mutual fund industry as on January 31, 2022 stood at Rs 38.01 lakh crore. In the last five years it has more than doubled – increasing from Rs 17.37 lakh crore as on January 31, 2017 to Rs 38.01 lakh crore as on January 31, 2022, showing a compounded annual growth rate of 17 per cent.
AUM Growth Of Indian MF Industry in Last Five Years
Such a rise in AUM has come along with the adoption of mutual funds by more and more investors. The mutual fund industry crossed a milestone of 10 crore folios during the month of May 2021. The total number of accounts (or folios as per mutual fund parlance) as on January 31, 2022 stood at 12.31 crore, while the number of folios under equity, hybrid and solution-oriented schemes, wherein the maximum investment is from the retail segment, stood at about 9.95 crore.
Using MF to Create Wealth
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