Pandemic does not seem to have affected fund mobilisation through capital market as Financial Year 2020-21 (FY 21) saw resources raising through public issue more than doubled. Mutual fund and corporate bond market also registered good growth; a Finance Ministry statement released on Wednesday.

“Despite the uncertainty prevailing in FY 2020-21 owing to Covid-19 pandemic, fund raising in FY 2020-21 was better than that in FY 2019-20 for both Public Issues and Rights Issues,” the statement said.

According to data compiled by the Ministry, fund raising through public issue jumped 115 per cent during FY 21 while growth was 15 per cent for rights issues. Similarly, number of unique investors across different kind of mutual fund grew by 10 per cent, while number of issues in Corporate Bond Market increased by 10 per cent in FY 2020-21.

Mutual funds

Assets under management (AUM) of Mutual Fund Industry increased by 41 per cent to ₹31.43-lakh crore as on March 31 of FY 21 from ₹22.26-lakh crore as on March 31, FY 20. During this period, the number of unique investors across Mutual Fund schemes also increased by 10 per cent to 2.28 crore from 2.08

With increasing expansion of the MF industry in smaller cities, the AUM from below top 30 cities increased by 54 per cent to over ₹5.35 lakh crore from ₹3.48 lakh crore. Investors in Mutual Fund industry may choose to invest in any of the 1,735 mutual fund schemes across categories as per their investment objective as on March 31, 2021.

Corporate bond market

Similarly, around 2003 issues of Corporate Bonds for an amount of over ₹7.82-lakh crore happened in FY 21, surpassing the amount raised (around ₹6.90-lakh crore). While the number of issues increased by 10 per cent during FY 21, the amount raised increased by 13.5 per cent as compared to the previous financial year.

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