The Indian mutual fund industry has shown remarkable growth, with net inflows surging by 135% and net Assets under Management (AUM) rising by nearly 39% over the last year. According to ICRA Analytics' recent report, mutual fund inflows in November 2024 reached US$ 7.09 billion (Rs. 60,295.30 crore), up from US$ 3.01 billion (Rs. 25,615.65 crore) in November 2023. This growth has driven net AUM to a record US$ 800.09 billion (Rs. 68,08,000 crore), up from US$ 576.45 billion (Rs. 49,05,000 crore) a year earlier. The rise in AUM is primarily attributed to a significant increase in equity schemes, which saw inflows climb 131.35% to US$ 4.22 billion (Rs. 35,943.49 crore) in November 2024. Since the start of 2024, equity mutual fund inflows have grown by 65.03%, reaching US$ 2.56 billion (Rs. 21,780.56 crore) in January 2024 alone.
Despite global market volatility, driven by sluggish growth, increasing protectionism, and geopolitical concerns, the Indian mutual fund industry remains resilient. Strong retail investor participation, a broadening investor base, and growing awareness in smaller cities buoy this optimism. Large-cap funds saw inflows increase by 731% to US$ 299.4 million (Rs. 2,547.92 crore) in November 2024, compared to US$ 36 million (Rs. 306.70 crore) last year. Sectoral and thematic funds also saw strong inflows, rising by 289.77% to US$ 900 million (Rs. 7,657.75 crore). However, volatility in domestic equity markets, particularly following disappointing corporate earnings in Q2 FY24, has raised concerns. Experts predict that large and mid-cap funds will attract more investor interest due to increased market uncertainty. Due to strong corporate governance and government-backed growth initiatives, small and mid-cap funds are expected to retain investor attention.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
