Mutual Fund Industry Sees Significant Growth of 40.70%

The Indian mutual fund industry witnessed a substantial surge in assets under management (AUM) over the past year. According to the Association of Mutual Funds in India (AMFI), total AUM increased by 40.70% from ₹46.94 lakh crore in August 2023 to ₹66.04 lakh crore in August 2024. This growth was primarily driven by increased investments from retail investors, particularly in equity schemes.

Retail Investors Fuel Growth

Individual investors’ AUM in mutual funds rose by a remarkable 48.67% from ₹27.15 lakh crore to ₹40.36 lakh crore during the same period. This trend is reflected in the increased share of equity-oriented schemes, which now account for 60.1% of industry assets compared to 52.7% a year ago.

Shift Away from Debt Schemes

In contrast, the proportionate share of debt-oriented schemes has declined from 19.2% to 14.5%. Exchange-traded funds (ETFs) maintained a steady market share of 12.7%.

Investor Preferences

Individual investors primarily allocate their funds to equity-oriented schemes, accounting for 87% of their total AUM. Meanwhile, institutional investors favour liquid, debt-oriented schemes and ETFs, which together comprise 52% of their holdings.

SIP Contributions Drive Growth

The surge in mutual fund assets is also attributable to a consistent increase in Systematic Investment Plan (SIP) contributions. The number of SIP accounts reached an all-time high of ₹9,61,36,329 in August 2024, and SIP AUM reached ₹13,38,944.73 crore, surpassing previous records.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.