Page 119 - Nuvama | IC Report 2023

INDIA: THE 5D ADVANTAGE

2600 2,557
Exhibit 5:
US equity MFs’
AUMs catapulted
2080 post-1980
($ in Billions) 1560 AUM's

1040 Catapaulted

520 471

3 17 45 52
0
1950 1960 1970 1980 1990 2000
US equity MFs' AUM

A virtuous capitalist growth cycle

A secular trend of increased equity savings has taken off in India. This is evident from ballooning
inflows into Indian mutual funds. Meanwhile, equity deployment by Indian mutual funds has grown
tenfold over the last eight years, after unimpressive stagnancy in the previous three. More importantly,
participation in equities is widespread and not just concentrated in metros; it has now spread to
households in tier-2 and tier-3 cities as well.
The equity cult has resulted in increased capital market access, improved corporate balance sheets,
lower volatility on bourses and reduced dependence on foreign capital. This is vital for growth to sustain
as capital is the oxygen for a sustained growth cycle and shall only help amplify India’s endowments.

20,000
India equity MFs' AUM increased at 26% Exhibit 6:
CAGR over last 10 years Indian equity
MFs’ AUMs have
15,000
skyrocketed over
(Rs. in Billions) 10,000 past few years

5,000

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021

India equity MFs' AUM
Source: CMIE

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