New Delhi: With the Centre and states agreeing to reduce GST from 18 per cent to 5 per cent during the 56th meeting of the GST Council on Wednesday, it is being estimated that the tax cut benefits will help in increase in consumption and also help the common man save more as the expenses will decrease. The new Goods and Services Tax (GST) rate will be effective from September 22, 2025.
In recent years, India’s mutual fund industry has been growing at a very fast pace. The data from the Association of Mutual Funds in India (AMFI) reveal that the Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the month of July 2025 was recorded at Rs 77,00,420 crore.
The AUM of the Indian MF Industry recorded a 6 fold surge in 10 years. The AUM stood at Rs 13.17 trillion on July 31, 2015, which skyrocketed to Rs 75.36 trillion as on July 31, 2025.
GST 2.0: Investment Opportunities in Mutual Funds
Commenting on the effect of new GST rates on the Mutual Fund industry, Nilanjan Dey, director, Wishlist Capital, stated that MF investors will gain from the latest initiative before the festive season because it will drive consumption, which is clearly a major segment of the markets.
Hailing the Council’s decision to announce a 2 rate tax structure, Dey said firms engaged with the average consumer, like automobiles and white goods manufacturers would benefit in general. He thanked the government for fewer slabs and the large gap between the two key rates.
In a message to the Mutual Fund investors, the Wishlist Capital director said, “Investors who plan to allocate to pure-play consumption funds for medium and long terms can reasonably expect superior risk-adjusted returns in the days ahead. The consumption theme is already a significant allocation for many equity funds across the asset management space. This is likely to attain higher critical mass in future.””
The average investor looking at these funds may consider Systematic Investment Plans for meeting their own wealth creation needs, he added.
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