In November 2024, the mutual fund industry’s Assets Under Management (AUM) surpassed the ₹68 lakh crore milestone for the first time, reaching ₹68.08 lakh crore—a remarkable 34% increase from ₹50.78 lakh crore in December 2023. Projections indicate that the total AUM could exceed ₹69 lakh crore by the end of the year, with anticipated inflows in December expected to contribute an additional ₹1 lakh crore. This robust AUM expansion has been primarily driven by steady inflows into equity schemes, which accounted for ₹30.5 lakh crore, or 45% of the industry’s total assets. A decade ago, equity mutual fund AUM was just ₹1.9 lakh crore, highlighting a significant shift in investor sentiment. Notably, equity AUM crossed the ₹30 lakh crore mark for the first time in August 2023.
Despite a slowdown in inflows into equity schemes due to recent stock market volatility, November marked the 45th consecutive month of net inflows into equity-oriented funds, underscoring the growing popularity of mutual funds among investors.
Retail Investors Flock to Sectoral and Thematic Funds
Among the 11 equity mutual fund categories, sectoral and thematic mutual funds have continued to attract significant retail investor interest, with their AUM rising 79% in 2024 to reach ₹4.61 lakh crore, up from ₹2.58 lakh crore in December 2023. Small-cap mutual funds have also gained traction, with AUM growing to ₹3.26 lakh crore as of November 2024, compared to ₹2.33 lakh crore at the end of 2023. Similarly, mid-cap mutual funds saw a surge in AUM from ₹2.81 lakh crore to ₹3.89 lakh crore during the same period. Large-cap funds reported an AUM of ₹3.62 lakh crore in 2024. Additionally, other schemes, including index funds and ETFs, experienced a 28% increase in AUM, rising from ₹8.83 lakh crore in January to ₹11.29 lakh crore in November.
Over the past decade, the AUM of the Indian mutual fund industry has grown more than sixfold, surpassing the ₹10 lakh crore mark in May 2014 and reaching ₹68.08 lakh crore by November 2024.
SIP Inflows Surge
Systematic Investment Plans (SIPs) have also gained momentum, with SIP AUM hitting a record ₹13.54 lakh crore in November 2024. The number of SIP accounts reached an all-time high of over 10.22 crore, with monthly SIP inflows increasing by 48% from ₹17,073 crore in November 2023 to ₹25,320 crore in November 2024.
Market Resilience Amid Global Uncertainties
Despite foreign portfolio investor (FPI) outflows causing dips in the Indian stock market, domestic institutional investors (DIIs) have consistently stepped in to stabilize the market. This trend, supported by robust retail investment, has ensured that the Indian stock market remains resilient even amid global economic challenges.
Experts, including Rishabh Goel, MD of Tailwind Financial Services, remain optimistic about the Indian market’s potential. As the year-end approaches, the mutual fund industry’s resilience in navigating market challenges while maintaining investor trust highlights its critical role in India’s financial ecosystem. For more insights on mutual funds, visit AMFI and SEBI.
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