Mutual Funds: Gujarat investors’ mutual fund assets cross 4L crore | Ahmedabad News

Ahmedabad: Mutual funds are emerging as the most preferred asset class for investments. This is indicated by the fast growth in assets under management (AUM) of Gujarat investors. According to data from the Association of Mutual Funds in India (AMFI), in just a year, AUM for the state surpassed Rs 4.04 lakh crore in May 2024, from Rs 3 lakh crore in June 2023. The growth registered from April 2024 was Rs 14,347.45 crore. This growth is attributed to record-breaking inflows through systematic investment plans (SIPs) and equity routes, according to financial analysts. The rising interest of investors in mutual funds amid greater returns coupled with better awareness are also reasons, say financial analysts in the city. “The rise in AUM is not just the increase in the net asset value of investments. Fresh investments have increased substantially. According to AMFI data, some 81 lakh new folios were added across India in the past two months, indicating renewed interest in mutual funds. There is particularly higher traction in SIPs,” said an Ahmedabad-based mutual fund distributor, on condition of anonymity. On the other hand, profits booked during the gold and silver rallies have often been diverted into mutual funds. Financial consultant, Jayesh Vithalani, told TOI, “SIPs in India touched a record high of Rs 20,904 crore in May. There is renewed interest in SIPs and many retail investors are expanding their SIPs. The sharp rally in gold and silver is another factor for the rally in mutual fund investments. Many investors reinvested profits from bullion in mutual funds. This was diverted towards SIPs, gold ETFs and equity MFs.”Industry players also say that rising awareness among investors is a key reason for the rise in assets. “The investor base has increased and people tend to invest with confidence on their returns,” Vithalani further added. “Investors are increasingly widening their portfolio in MF investments. For instance, SMEs which list themselves through IPO route often become golden opportunities for investors with a listing gain of 30-50%. The additional gains are often re-invested into SIPs, to earn quick wealth,” said Vithalani.

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