The mutual funds industry in India has witnessed significant growth over the past two decades, emerging as a key player in the country's financial market. This study explores the growth trends, key drivers, and challenges faced by the mutual funds sector in India. Using a comprehensive analysis of market data, industry reports, and trends in investor behavior, the study examines the factors contributing to the increasing popularity of mutual funds, including the rise of retail investors, digitalization, regulatory reforms, and the growing awareness about financial planning. However, despite this positive growth, the industry faces challenges such as market volatility, low financial literacy, and the underdeveloped infrastructure for financial advisory services. The findings suggest that while the Indian mutual funds industry is poised for further expansion, addressing these challenges is crucial for sustaining long-term growth. The study concludes by offering insights into the opportunities and strategies that can help overcome these challenges and facilitate further industry growth.

Mutual Funds Industry, Growth Trends, Financial Market

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