Mutual funds' asset base rose by 5 percent to Rs 23.96 lakh crore in July-end, driven by participation from retail investors and a spirited investor awareness campaign by the industry. The asset under management (AUM) of the industry, comprising 42 players, was Rs 22.86 lakh crore at the end of June, according to the data by Association of Mutual Funds in India (Amfi).
The total asset base of all the fund houses put together was Rs 19.97 lakh crore in July last year.
"The monthly rise in the asset base is mainly due to the industry body's investor awareness campaign and strong participation from retail investors," Amfi Chief Executive NS Venkatesh told PTI over phone.
Besides, Systematic Investment Plan (SIPs) continue to be the fancy of retail investors and people continue to invest through the route as it allows investors to invest in small amounts periodically instead of lump sum, he added.
Retail equity AUM has touched Rs 10 lakh crore last month. It stood at Rs 9.61 lakh crore in June-end.
Further, nine lakh new folios have been added last month taking the total to all time high of 7.55 crore at the end of July from 7.46 crore in preceding month-end.
"The addition of new folios suggests that new investors believe that mutual funds are among the most promising investment products for the long term," Venkatesh said.