Equity Mutual Fund Inflows Surge in FY25, AUM Up 23% Driven by SIP Growth
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Synopsis
Equity mutual funds in FY25 achieved record inflows, more than doubling compared to the prior year, driven by strong market sentiment and increased SIP contributions, leading to a significant rise in assets under management.
Key Takeaways
- Record inflows in equity mutual funds in FY25.
- Assets under management increased by 23%.
- New fund launches added Rs 85,000 crore.
- Record SIP contributions of Rs 2.63 lakh crore.
- Flexi-cap and small-cap funds saw considerable inflows.
Mumbai, April 19 (NationPress) Active equity mutual fund (MF) schemes concluded the financial year 2024–25 (FY25) with unprecedented inflows, exceeding twice the total from the previous year, as fund houses leveraged strong market sentiment, especially in the initial half of the year.
Despite fluctuations in the market, investor confidence remained robust, propelling the overall assets under management (AUM) to rise by an impressive 23 percent throughout the year.
While existing equity schemes maintained strong investor interest during the market rally, the launch of new funds significantly contributed to this growth.
New offerings alone added Rs 85,000 crore to the overall equity MF total for FY25, according to reports.
A total of 70 new active equity schemes were introduced during the year, primarily focusing on sectoral and thematic categories.
Fund houses also diversified their offerings by embracing passive investment strategies within these thematic areas, responding to the increasing demand from investors.
A substantial driver of this growth was the steep rise in SIP contributions, which reached Rs 2.63 lakh crore from April to February, marking an increase of over 32 percent from Rs 1.99 lakh crore in FY24, as reported by the Association of Mutual Funds in India (AMFI) last week.
In March alone, SIP inflows amounted to Rs 25,926 crore, aiding the mutual fund industry’s AUM in climbing to a historic peak of Rs 65.74 lakh crore, up from Rs 64.53 lakh crore in February.
Equity AUM specifically grew 7.6 percent month-on-month, rising from Rs 27.4 lakh crore to Rs 29.5 lakh crore.
Flexi-cap funds led the inflows with Rs 5,615 crore, followed by small-cap funds that attracted Rs 4,092 crore, showcasing continued retail interest in diversified and high-growth opportunities.
Midcap funds also witnessed steady inflows of Rs 3,438 crore, while dividend yield funds saw their traction double to Rs 140.5 crore during the month, as noted in the AMFI report dated April 11.
While most equity fund categories experienced healthy inflows, large-cap funds continued to face outflows of Rs 2,479 crore, although the rate of withdrawals decreased from February’s Rs 2,866 crore.
