Welcome to an in-depth exploration of mutual funds in 2025, featuring insights from Swarup Mohanty, Vice Chairman and CEO of Mirae Asset Investment Managers India, shared on the Paisa Vaisa podcast. Hosted by Anupam Gupta, this episode delves into the evolution of mutual funds, asset allocation, and the exciting future of this investment vehicle in India.
The Rise of Mutual Funds in India
In the last few years, mutual funds have become a prominent investment vehicle in India. The success story is evident from the staggering numbers, with monthly SIP (Systematic Investment Plan) flows reaching ₹25,000 crore and the industry’s AUM (Assets Under Management) approaching ₹100 lakh crore. Swarup attributes this growth to the financialization of assets, which began during the demonetization era and took off post-COVID.
Asset Allocation: The Key to Investment Success
Swarup emphasizes the importance of asset allocation in achieving investment returns. He shares a valuable insight: “95% of your returns come from asset allocation, and 5% come from the markets.” However, the majority of discussions focus on the market, often overlooking the crucial role of asset allocation. By adhering to a systematic asset allocation strategy, investors can make informed decisions and achieve their financial goals.
The Changing Landscape of Mutual Fund Products
As India experiences a generational shift in investment behavior, mutual fund products are evolving to cater to diverse risk profiles. Swarup notes that this is the first time three generations—our parents, ourselves, and our children—are investing simultaneously. This dynamic is driving the development of innovative products that appeal to different risk appetites and investment goals.
The Power of Thematic and Passive Investing
Mirae Asset has been at the forefront of thematic and passive investing, launching products like the Fang+ ETF and an EV (Electric Vehicle) product. These products have resonated with retail investors, showcasing a shift towards more specialized and forward-looking investment strategies. Swarup highlights that the ideation and innovation in passive investing are limitless, providing investors with a wide array of choices.
Mirae Asset’s Journey and Future Outlook
Mirae Asset’s journey in India began 14 years ago, with a focus on building a strong track record in equity and debt management. Today, they offer a comprehensive range of products across various risk spectrums, including thematic and passive funds. With a commitment to innovation and a keen eye on future trends, Mirae Asset is poised to continue its growth and serve the evolving needs of Indian investors.
The Importance of Financial Literacy
One of the key factors driving the success of mutual funds is financial literacy. Awareness campaigns and initiatives by organizations like the Employee Provident Fund Organization (EPFO) have made mutual fund products accessible and well-understood. Whether it’s active or passive investing, equity or debt, financial literacy empowers investors to make informed choices.
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