Indian Economy News

Mutual Funds: Total asset size spikes 40% in a year, individuals own lion’s share as equity schemes turn favourites

The mutual fund industry in India experienced a significant growth of 39.59% in its assets, reaching US$ 798.15 billion (Rs. 68,05,000 crore) in November 2024, compared to US$ 571.78 billion (Rs. 48,75,000 crore) in November 2023, according to the latest data from the Association for Mutual Funds in India (AMFI). This growth is largely driven by increased investments from retail investors, particularly in equity schemes. Contributions via Systematic Investment Plans (SIPs) surged by 48%, rising from US$ 2 billion (Rs. 17,073 crore) in November 2023 to US$ 2.97 billion (Rs. 25,320 crore) in November 2024. 

The data also highlights a shift in investor preferences, with equity-oriented schemes now accounting for 59.7% of the total assets, up from 54.9% a year ago. In contrast, debt-oriented schemes saw their share decline from 18.5% to 14.8%. Notably, 88% of the assets in equity-oriented schemes come from individual investors, including retail and high-net-worth individuals (HNIs). In contrast, institutional investors dominate other segments, with 88% of assets in liquid and money market schemes, 64% in debt-oriented schemes, and 88% in Exchange Traded Funds (ETFs) and Funds of Funds (FOFs). Additionally, 205 New Fund Offers (NFOs) were launched during the year, raising nearly US$ 11.73 billion (Rs. 1,00,000 crore), underscoring the growing enthusiasm for equities. Individual investor assets grew by 43.47%, reaching US$ 485.57 billion (Rs. 41,40,000 crore, while institutional assets increased by 33.97%, totalling US$ 312.46 billion (Rs. 26,64,000 crore). The proportion of individual investor assets in equity-oriented schemes is 87%. In contrast, institutional assets are more concentrated in liquid/money market and debt-oriented schemes. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.