Mutual Fund Reach Still Shallow Despite Record AUM: SEBI Chief
India’s mutual fund industry has reached a record ₹75 trillion in assets under management (AUM), but overall household participation remains limited, SEBI Chairperson Tuhin Kanta Pandey said on Friday. Speaking at an industry event, he noted that while awareness levels have grown, only about 6.7 percent of Indian households currently invest in mutual funds. This highlights the challenge of converting awareness into actual participation.
Inclusion and Trust as Core Priorities
Pandey identified financial inclusion and investor trust as the twin pillars for the next phase of growth. He pointed out that mutual fund assets in India represent less than 25 percent of GDP — far below developed economies where the ratio is close to 80 percent. Rural participation, in particular, remains weak at around 6 percent compared to 15 percent in urban centres. He emphasised that the sector’s long-term sustainability depends on improving accessibility and credibility across all demographics.
SEBI’s Upcoming Initiatives
To address these challenges, SEBI plans to expand investor education through digital, physical, and media outreach. The regulator also intends to strengthen its crackdown on fraudulent investment schemes and review distributor incentives to encourage first-time investors, especially women and rural participants. Pandey said the goal is to make mutual funds a “trusted and transparent wealth-building instrument” for all citizens, not just urban investors.SEBI chief says only 6.7% of Indian households invest in mutual funds despite record AUM.
