Mutual Funds Industry Crucial to India’s Growth, Says Piyush Goyal at AMFI Summit

Mumbai: Union Minister of Commerce & Industry, Piyush Goyal, highlighted the pivotal role of the mutual funds industry in India’s economic growth, encouraging financial literacy and driving innovative investment strategies. Addressing the Association of Mutual Funds in India (AMFI) Mutual Fund Summit 2025 in Mumbai as the Chief Guest, he lauded the industry’s efforts in empowering domestic investors and strengthening financial markets.

Goyal commended domestic investors for bridging the gap left by foreign institutional investors (FIIs) post-COVID, stating that Systematic Investment Plans (SIPs) and collective investment methods played a crucial role in supporting the market. He noted that these efforts have helped in spreading financial awareness and making financial products accessible across urban and rural India.

Emphasizing the need to safeguard small investors, Goyal urged industry leaders to focus on minimizing stock market volatility. He cautioned that large fund inflows, the pressure to deploy capital, and investor fear of missing out on attractive stocks have led to market fluctuations, sometimes resulting in financial distress. He described the unpredictability of the stock market as a wake-up call for both investors and industry stakeholders.

The Minister also called upon AMFI to play a proactive role in protecting investors from misleading market trends. He noted that companies with strong fundamentals have remained stable during recent market turbulence, and stressed that the responsibilities of mutual fund firms extend beyond short-term profits.

Goyal highlighted the remarkable growth of Assets Under Management (AUM) in the mutual fund sector, which currently stands at ₹70 lakh crore and is expected to reach ₹100 lakh crore soon. He asserted that domestic investors, rather than FIIs, will shape India’s financial future.

Encouraging the mutual funds industry to focus on financial inclusion, the Minister urged firms to support and educate investors about risks, ensuring that financial literacy becomes a collective responsibility. He expressed confidence that such initiatives would fuel India’s economic growth over the next 22 years.