Only 3 per cent of investors in India hold 41 per cent stake in mutual funds. Recent figures released by Securities Exchange Board, SEBI show that only 3 per cent of investors earning between Rs 25 lakh to Rs 5 crore and above account for 41.54 per cent of the AUM of the mutual fund industry. The number of such investors is 5,57,822 and they contribute 13,34,170 to the AUM.

The amount currently available for fund management by a mutual fund company is called AUM or assets under management. It can be understood in this way that if someone invested one crore rupees a year ago but now the amount of the fund has increased to 1.5 crores then the AUM of the fund will also be 1.5 crores.

It is clear from the data that mutual funds are dominated by the high income group in the country. For example 4,22,131 investors earning between Rs 25 lakh to Rs 10 crore, which is 2.27 per cent of the total investors, have 3,40,640 AUM and 10.60 per cent of the assets under management.