Mutual funds surpass bank deposits in inflows significantly
Mutual funds have seen a significant increase in inflows, surpassing bank fixed deposits despite market volatility. In the past 11 months, mutual fund inflows rose by 90% to ₹9.79-lakh crore, while bank deposits grew only 9.2%. The growth in overall bank deposits slowed to 8% year-on-year, reaching ₹231-lakh crore. In contrast, the mutual fund industry's assets under management increased by 24% to ₹68-lakh crore. Young investors are increasingly favoring mutual funds for long-term wealth creation, driven by a new tax regime that has made bank fixed deposits less attractive. The variety of mutual fund products also caters to different risk appetites.