BHUBANESWAR, JULY 19, 2023
The Indian Mutual Fund industry has grown twice its size over the past 5 years where the Assets Under Management (AUM) for the industry has increased from Rs 8.11 lakh crore in June 2018 to Rs 44.39 lakh crore in June 2023, said a senior executive of UTI Asset Management Company Limited.
Talking to media persons here, UTI Asset Management Company Limited Head of Equity Ajay Tyagi said that the mutual fund growth story in the country is expected to be driven further by the overall pick up in the economy, higher disposable income and thus higher investible household surplus.
Commenting on the growth of mutual fund investors, Tyagi said, “Investors often make investment decisions based on sentiments than valuations, leading to compromising the returns. An asset allocation strategy that is based on valuation driven model and dynamically rebalances portfolio across equity and fixed income can help investors overcome their psychological barriers.”
UTI Asset Management Company Limited, the pioneer of the Indian MF industry has been contributing to the development of the capital markets in the country for about six decades now. With its domestic mutual fund quarterly average AUM being Rs. 2.48 lakh crore as on June 30, 2023, it is the eighth largest mutual fund house in the country with its presence across the length and breadth of the country through a dense network of UTI Financial Centers (UFCs), mutual fund distributors and district associates.
For Bhubaneswar as a T30 city, the total industry AUM stood at Rs 14,365 crore in May 2023.
With the rising financialization of household savings and financial literacy, investors are now more aware of the risks and volatility associated with investments in the markets and look to diversify their investments across asset classes to have an optimal allocation. However, investors face challenges in asset allocation and portfolio rebalancing as per the changing market dynamics, said Tyagi.
UTI Mutual Fund has launched UTI Balanced Advantage Fund on July 21, 2023 to provide an asset allocation solution to the investors, he informed while adding that this is a model guided asset allocation strategy that dynamically manage assets between equity and fixed income.