Something interesting and potentially unprecedented is driving the rapid mutual fund growth in India (Q3 FY'22 update, numbers represent YoY growth).

1. MUTUAL FUND
INVESTOR
INDIA'S NEW

2. India's Mutual Fund industry is growing rapidly
Total Mutual Fund
Accounts growth
Overall Mutual Fund
AUM growth
27% 29%
54%
Equity Mutual Fund AUM growth
With Equity Funds seeing above average growth
All figures are Q3 FY22 YoY growth

3. Interestingly, this growth is driven by
riskier categories of equity funds
Small cap
Flexi cap
Thematic
70% Invest in companies with sub-
5000 crore market capitalization
Given their size, tend to be more
volatile
Invest across large, mid and small cap
stocks with no allocation restrictions
Lack of diversification can make these
risky
Invest in specific themes - e.g. rural,
infrastructure, international etc.
Lack of diversification can make
these risky
64%
188%
All figures are Q3 FY22 YoY growth

4. And is potentially being fuelled by the
first-time retail investor from tier 2+ cities
Growth in
SIP AUMs
Growth in AUM%*
driven by
individuals
Growth in AUM%
coming from B-30
investors**
288 bps 62 bps 42.5%
Who is investing?
*AUM- total market value of the
investments that a person or entity
manages on behalf of clients.
**B-30: Investors from beyond
top 30 geographical locations
in India
All figures are Q3 FY22 YoY growth

5. Would this new investor be better off with
investing education?
We want to hear from you...
Read our detailed analysis on ZCharts to learn more -
https://bit.ly/3KWh8Ss
All figures are Q3 FY22 YoY growth numbers | Source: HDFC Q3 earnings report