8,083.80-170.0
Stock Analysis, IPO, Mutual Funds, Bonds & More

Retirement mutual funds AUM increase 24% in Apr–Jan

Retirement-oriented mutual fund schemes are typically open-ended, with lock-in of five years or till the retirement age, whichever is earlier. Retail investors are putting in around Rs 8,532 crore every month through SIPs into these funds.

ET Online|
Last Updated: Feb 22, 2020, 10.52 AM IST
0Comments
iStock
iStock-144318103
Retirement mutual fund schemes saw an increase of 24.46% in their total AUM to Rs 10,425.28 crore during April 2019 – Jan 2020, shows Amfi data.

As on January 31, 2020, the retirement solution-oriented schemes had 25.42 lakh of folios in 24 retirement funds, as compared to 24.97 lakh as on April 30, 2019 in 21 solutions-oriented schemes.

Mutual Fund schemes are emerging as the popular long term retirement avenue, given the robust continuation of SIP contribution reaching at an all-time high of Rs 8,532 crore, by the retail investors, and also the total mutual fund AAUMs recording an all-time high of Rs 28.18 lakh crore.

“Awareness and affinity on the part of retail investors towards Mutual Fund schemes as a whole as also on Retirement-led mutual fund schemes is rising, as the long term orientation of mutual fund investment horizon, is slowly getting well-entrenched within retail investors. Steady month-on-month positive inflows during the last 10 months into Retirement solutions-oriented category of schemes, is reflective of its enhanced awareness,” says N S Venkatesh, Chief Executive, AMFI.

Retirement-oriented mutual fund schemes are typically open-ended, with lock-in of five years or till the retirement age, whichever is earlier.

Retail investors are putting in around Rs 8,532 crore every month through SIPs and average of Rs 200 crore every month into solution-oriented retirement mutual fund schemes.

Retirement mutual fund schemes are best suited to deliver for long term returns through systematic investment availing a mix of equity and debt schemes. Increasingly, Retirement Mutual Fund schemes are being preferred alongside PPF and other traditional debt-oriented avenues.

Increasing longevity and the need to make large pool of financial corpus, is making individuals turn to market-linked mutual fund schemes. Individuals have realised that allocating funds every month towards mutual fund schemes which have a longer term objective of 25 to 30 years would be far beneficial, financially, Venkatesh said.

Also Read

Private market AUM grew by 10% to $6.5 trillion in 2019: Report

Focused mutual funds gain big in December, AUM jumps manifolds

Equity AUM surge: Axis, Kotak, Mirae Mutual Fund CEOs speak

PPFAS mutual fund AUM crosses Rs 2,700 crore

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service