SDG 8: Decent Work and Economic Growth
SDG 10: Reduced Inequalities
Institutions: Reserve Bank of India; Securities and Exchange Board of India
Equity mutual funds have experienced significant growth in India, with retail participation increasing due to factors like higher financial inclusion, evolving saving preferences, and technological advancements. Assets under management have seen rapid expansion, and systematic investment plans are growing, particularly in smaller towns and among women investors.
Empirical analysis using machine learning identifies demat accounts, fixed deposit rates, and business confidence as key drivers shaping flows into equity mutual funds. The study finds that real GDP growth helps forecast mutual fund flows, highlighting the connection between economic performance and investor behaviour.
As equity mutual funds gain a larger role in household financial savings and domestic capital markets, continued monitoring of determinants, risk management, and investor protection is essential for ensuring market stability and fostering inclusive growth.
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