Domestic Mutual Funds See Record Growth in Equity AUM for 11th Year
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Synopsis
In 2024, equity AUM of domestic mutual funds in India surged to Rs 33.4 lakh crore, marking a 40% year-on-year increase. This growth, noted for the 11th consecutive year, was driven by rising market indices and strong sales, despite increased redemptions. Total AUM for the mutual fund industry reached Rs 66.9 lakh crore.
Key Takeaways
- Equity AUM increased for the 11th consecutive year.
- Reached Rs 33.4 lakh crore in 2024.
- Net inflows hit an all-time high of Rs 4.47 lakh crore.
- Investments in systematic investment plans (SIPs) reached Rs 26,460 crore.
- Top sector holding was private banks at 16.6 percent.
Mumbai, Jan 14 (NationPress) The equity assets under management (AUM) of domestic mutual funds (MFs) have achieved a remarkable rise for the 11th consecutive year, reaching Rs 33.4 lakh crore with a 40 percent year-on-year growth in 2024, as reported on Tuesday.
This increase in AUM was driven by a positive trend in market indices, with the Nifty seeing a 9 percent growth, alongside a surge in equity scheme sales, which reached Rs 9.12 lakh crore, marking a 69 percent growth, according to Motilal Oswal’s Fund Folio Report.
Despite this growth, redemptions increased by 40 percent to Rs 4.64 lakh crore, leading to a significant rise in net inflows, which more than doubled to an all-time high of Rs 4.47 lakh crore in 2024, up from Rs 2.06 lakh crore in CY23.
The total AUM of the mutual fund industry grew by 32 percent to Rs 66.9 lakh crore in CY24, thanks to the expansion of equity funds, liquid funds, balanced funds, other ETFs, and income funds.
As noted in the report, investors continued to allocate funds to mutual funds, with contributions to systematic investment plans (SIPs) reaching a record high of Rs 26,460 crore in December 2024, reflecting a 50.2 percent year-on-year increase.
In December, mutual funds showed a keen interest in sectors such as healthcare, retail, consumer durables, technology, and real estate, resulting in a month-on-month increase in their weights.
The top sector holding for MFs in December was private banks at 16.6 percent, followed by technology at 9.4 percent, automobiles at 8.2 percent, and capital goods at 7.8 percent.
Consumer durables, retail, real estate, healthcare, and textiles recorded the highest increases in value month-on-month.
Latest data from the Association of Mutual Funds of India (AMFI) indicated that actively managed equity mutual fund inflows experienced a monthly growth of over 14 percent, totaling Rs 41,155.9 crore in December. This growth in equity mutual fund inflows was attributed to increased investments in thematic/sectoral and small-cap funds.
The mutual fund industry has seen a remarkable growth over the past decade, with AUM rising by an astonishing 524 percent, reaching Rs 68.08 lakh crore in November 2024, up from Rs 10.9 lakh crore in November 2014.
