Mutual funds are no longer looked down upon but seen as a healthy investment option and in April total investment in 33 funds crossed Rs 3.5 lakh crore, an industry official has said.
Also, the risk appetite too is growing with the burgeoning young middle class, making mutual funds a preferred option compared to small saving schemes that is considered safe but give low returns.
"Main reason for the growth in assets of mutual funds is awareness which is increasing day by day and the returns they are giving," Association of Mutual Funds in India (AMFI) Chairman AP Kurien told.
"MFs are increasingly being recognised by households, in order to maximise returns," he said.
As per AMFI data, total AUM as on April 30 was Rs 3,50,441 crore as compared to Rs 3,26,388 crore a month ago.
"Investors risk appetite was growing for return on long term investments vis-a-vis small savings," said SBI Mutual Fund Vice-President and Chief Marketing Officer RS Srinivas Jain.
"Systematic Investment Planning (SIP) which was introduced two-three years back is catching up by word of mouth," Kurien said adding "we have 12 lakh SIP accounts as of March 31."