India's mutual fund (MF) industry signed off the year 2024 on a high note with close to over 36 percent growth, taking the total assets under management (AUM) to a record high of Rs 69.33 trillion in December. It was up from Rs 51.09 trillion in the year ago month, buoyed by the higher inflows into equity funds and SIPs which crossed Rs 26,000 crore.
The industry, which has at least 45 key players currently, had closed 2023 with 25.34 percent at Rs 51.09 trillion which rose to by a tad over 36 percent at Rs 69.33 trillion in December 2024, according to the monthly data release from the industry lobby Amfi on Thursday.
Amfi also said the share of individual investors in the overall AUM composition rose 230 basis points from 57.80 percent to 60.10 percent in the year gone-by. Also overall folios rose to an all-time high of 22.50 crore in 2024 of which retail folios stood at 17.90 crore. Retail AUM also rose to an all time high at Rs 39.91 trillion in 2024.
On a net basis, Amfi said the AUM stood at Rs 66.93 trillion in December, down from Rs 68.08 trillion in November, while the total AUM rose to Rs 69.33 trillion, up from Rs 68.05 trillion in November.
This marks the 46th straight month of positive inflows, starting from March 2021, according to Venkat Chalasani, the Amfi chief executive, who spoke to media on Thursday.
On the rocking SIP inflows, which crossed the Rs 26,000 crore mark, Chalasani said the number of new SIPs registered in December stood at 54,27,201, taking the SIP AUM to Rs 13.63 trillion in the year. Of the monthly inflow in December crossed a record at Rs 26,459.49 crore, as against the previous record of Rs 25,319.66 crore in November. The number of SIP accounts stood at highest ever at 10,32,02,796 in December.
Chalasani attributed the higher growth to new fund launched which touched a record 34 schemes in December, of which 33 were open-ended schemes, raising a Rs 13,852 crore.
“Despite a highly volatile market, equity-oriented schemes continued to see strong inflows, reflecting investor confidence and commitment to stay invested for the long-term, highlighting their growing maturity.
“The SIP contribution has reached an all-time high of Rs 26,459.49 crore in December reflecting investors' steadfast commitment to their financial goals,” Chalasani said, adding “the record-breaking 22.50 crore mutual fund folios in December underscores investors’ confidence in the industry's ability to deliver long-term value despite short-term fluctuations.”
Sectorally speaking, inflows into equity funds rose 14.5 percent in the reporting month at Rs 41,155 crore vis the Rs 35,943.4 crore in the previous month.
Mid-cap funds saw an inflow of Rs 5,093 crore, 4 percent higher on-month, whereas the large caps saw a fall of 21 percent to Rs 2,010 crore in December from the previous month. Inflows into small-cap mutual funds rose 13.5 percent to Rs 4,667 crore.
Flexi-caps saw an inflow of Rs 4,730 crore, down 7 percent, while multi-cap schemes higher churn with 15 percent lower inflows at Rs 3,075.11 crore.
The major spike was seen in the inflow of sectoral/thematic funds, which saw a jump of 100 per cent to Rs 15,331 crore, Amif said, adding of the 33 new open-ended schemes and one close-ended fund, 12 sectoral/thematic funds, one multi cap fund, two multi asset allocation funds, one arbitrage fund, one children's fund, 12 index funds and two other ETFs.