AUM crosses Rs 68 lakh crore as retail investors embrace systematic investment plans for wealth creation.
New Delhi, December 13: The Indian Mutual Fund (MF) industry has reached remarkable new heights, with Systematic Investment Plan (SIP) flows increasing by 39 percent in November compared to the same period last year, according to a report by Motilal Oswal.
The report highlighted the industry’s strong performance, noting that assets under management (AUM) have surpassed Rs 68 lakh crore. Monthly SIP contributions in November 2024 stood at Rs 25,320 crore, underscoring the growing appeal of this investment avenue among retail investors.
“The Mutual Fund industry crossed Rs 68 lakh crore AUM, with Monthly SIP flows at Rs 25,320 crore. Mutual Fund AUM and SIP flows have grown by 48% and 39%, respectively, over the past year,” the report stated.
The mutual fund industry has demonstrated robust growth, with total AUM increasing by 48 percent in the past year. SIP flows have outpaced non-SIP monthly gross flows, growing at a rate of 48 percent compared to 12 percent for non-SIP flows over the same period. In November, SIP contributions accounted for approximately 2 percent of total mutual fund inflows, even as non-SIP flows experienced a decline.
Since March 2021, the total AUM of mutual funds has grown at a compound annual growth rate (CAGR) of 23 percent, with equity mutual funds contributing significantly to this growth. Equity AUM now constitutes 45 percent of the total AUM, having increased by 50 percent, or Rs 10 lakh crore, over the past year to reach Rs 30 lakh crore. On average, equity AUM has grown by 3 percent month-on-month.
The report also highlighted declining redemptions in equity mutual funds, which currently account for 42 percent of total monthly flows. Despite this, all equity categories recorded an increase in folios in November 2024, signaling sustained investor interest in equity funds.
Mid-cap funds stood out as the fastest-growing segment, with 6,06,430 new folios added in November 2024. This reflects strong demand for mid-cap investment options among retail investors.
The data underscores the resilience and adaptability of the Indian mutual fund industry, with consistent growth in AUM and SIP contributions, as well as increased participation across equity categories. It also highlights evolving investment preferences among Indians, who are increasingly adopting systematic and disciplined investment strategies to achieve their financial goals.