India's SIPs Net Inflows Surge by 233% This Year; MF Sector Grows by 135%
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Mumbai, Dec 21 (NationPress) This year, India has witnessed an extraordinary 233% year-on-year growth in net inflows for systematic investment plans (SIPs), as reported by ICRA Analytics, showcasing the resilience of the Indian economy despite ongoing geopolitical challenges.
The total net inflows from January to November reached Rs 9.14 lakh crore, compared to Rs 2.74 lakh crore in 2023, marking a remarkable growth of 233%.
The number of new SIPs registered surged to 49.47 lakh by the end of November, up from 30.80 lakh in November 2023.
Additionally, the SIP asset under management (AUM) was reported at Rs 13.54 lakh crore in November, an increase from Rs 9.31 lakh crore in 2023.
The Indian mutual fund (MF) industry experienced a substantial growth of over 135% in net inflows and a nearly 39% increase in net AUM over the past year, indicating a promising future for the industry as India stands out in the global economic landscape.
“The structural growth narrative of the Indian economy remains strong, positioning India as a bright spot globally, and the domestic mutual fund sector is poised for significant growth in the coming years,” stated Ashwini Kumar, senior vice president and head of market data at ICRA Analytics.
Meanwhile, the total inflows into the mutual fund industry saw a growth of 135.38%, amounting to Rs 60,295.30 crore in November 2024, compared to Rs 25,615.65 crore in November 2023.
Notably, the net AUM, which was Rs 49.05 lakh crore last November, has remarkably surpassed the historical milestone, reaching Rs 68.08 lakh crore this November.
All fund categories experienced robust growth in India, with large-cap equity funds seeing the highest inflows, which surged by nearly 731% to Rs 2,547.92 crore in November 2024 compared to Rs 306.70 crore during the same month last year.
“Large and mid-cap funds are expected to attract significant investor interest in the near future due to heightened volatility in domestic markets driven by escalating geopolitical risks and global uncertainty,” Kumar mentioned.
Furthermore, small-cap and mid-cap funds, which have consistently increased in AUM, are likely to maintain investor interest in the medium to long term, supported by a strong regulatory framework and the government's commitment to fostering intrinsic growth in the country's economy.
