He added the sector’s good track record and SIPs have contributed to the growth.
The increase in dominance of mutual funds will act as a good counter balance to foreign flows, say experts.
Foreign institutional investors’ share of India’s m- cap, however, is significantly higher at 20 per cent.
“There is still a lot of potential for mutual funds to grow. Investors are fast learning the importance and need of investment in mutual funds. The industry’s responsibility will increase as more and more retail investors look towards mutual funds for wealth creation,” said Sundeep Sikka, chief executive officer of Reliance Mutual Fund.