In India, the assetmanagement industry is considered as the fastest growing in the world. As ofNovember 17, there are about 42 companies operating in this country under thissegment. In the year ending December 2017, the assets under management of the mutualfund industry stood at Rs 21.27 lakh crore (US$ 328.
49 billion). And around aninflow of Rs 47,002 crore was registered in India’s mutual fund schemes viasystematic investment plan route between April-December 2017. During theFinancial year 2016-17, also a record inflow of amount of US$ 51.02 billion inmutual funds was registered. According to the reports of Association of MutualFunds in India, this was regarded as the highest investment in mutual fundschemes since the Fiscal year 1999-2000. In the area of equity mutual funds, anet flow of Rs 14,921 crore was recorded thereby resulting an increase in theasset base to Rs 6.90 lakh crore in December 2017.
Also due to rising increasein the mutual funds of investors it led to the increase in the number ofportfolios which was registered as 66.5 million as of December 2017. The Mutualfund equity portfolios reached a 10 year high by the end of 2017.
Diagramdepicting the composition of investors and the top companies acquiring theAsset management industry It is evident that thecorporate investors accounted for almost 46.25 per cent in total AUM in Indiain September 2017, while the high net worth individuals (HNWIs) and retailinvestors accounted for 28.01 per cent and 22.96 per cent respectively.
It isrecorded that there is significant decrease in the percentage of acquisition bythe different investors during the year 2016-17, the percentages have beenslightly decreased over the period. Coming to the leading AMCs, ICICIPrudential Asset Management Co. Ltd holds the first position with highest worthof US$ 43.40 billion followed by the different AMCs as shown in the list. Equity Market TurnoverGraphshowing the turnover on NSE and number of companies listed in major stockexchangeWith the steadily risingturnover in the financial markets which led to rapid expansion in the brokeragesegment.
It is evident that a growth at a CAGR of 19.13 per cent between theyear 1996-2017 which results in reaching a value of US$ 790.21 billion in theFY 2017. Also the good performance of NSE has led to yielding the best returnssince 2014 and significant rise in the turnover is quite evident.
Major factorcontributing towards the increase of equity market turnover is the increase inthe number of companies listed in the country’s stock exchange i.e. it rosefrom 135 in 1995 to 1885 in November 2017. The regulation of Securities andBoard of India (SEBI) has contributed much towards protecting the right of theshareholders due to its various reforms and legislation governing the sector. Increase in the number oflistingsGraphshowing the number of listed companies and amount raised by IPOsA significant increase inthe listed companies of NSE and BSE from 6,445 in FY 10 to 7,501 in December2017 is recorded. Around Rs 150 lakh crore was the market capitalisation of allthe listed companies and it is projected that the revenues of brokerageindustry in India are estimated to grow by 15-20 per cent to reach US$2.80-2.
96 billion in the FY 2017-18 which results in healthy volumes andincrease in the share of the cash segment.Coming to the IPOs, inIndia it increased from US$ 318 million in FY 2008-09 to US$ 10,888 million inFY 2017-18 and significant record was registered in IPOs by Small and mediumenterprises with a finding of Rs 16.79billion in 2017 through 133 issues. It is recorded that around a total of 153IPOs were issued in Indian stock markets in 2017 which amounted around raisinga total of US$ 11.6 billion.