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FY 2025 started on a positive note for the industry. The MF industry AUM reached a new milestone as it crossed the Rs 57 lakh crore mark in April 2024. The industry witnessed a growth of 37% in the last one year.
Overall, the industry inflows turned positive in April as it recorded net inflows of Rs.2.40 lakh crore. Last month, the industry had seen net outflows of Rs.1.59 lakh crore.
Also, the MF industry witnessed net inflows in equity funds for the 38th month in a row and monthly SIP inflows touched all-time high of Rs 20,000 crore in April 2024.
Here are the other key data points for the month of April 2024:
Equity inflows report a decline
Equity inflows dipped from Rs 22,000 crore in March 2024 to Rs 18,900 crore in April 2024 mainly due to decline in inflows in large cap funds.
Large caps funds saw net inflows of Rs 358 crore, a dip from Rs 2,000 crore in March 2024.
However, within the equity category, sectoral/thematic received the highest inflows of Rs.5,000 crore, followed by multi cap funds with inflows of Rs 2,700 crore and large & mid cap category with inflows of 2,600 crore.
Baring focused funds and ELSS, all categories in equity received net inflows.
Debt flows turned positive
The overall debt flows turned positive at Rs 1.89 lakh crore, largely due to the inflows in liquid funds.
Liquid funds received the highest inflows of Rs 1 lakh crore followed by money market (Rs 34,000 crore) and overnight funds (Rs 21,000 crore).
This was partially set off by the net outflows from medium duration funds (Rs 425 crore), banking & PSU funds (Rs 400 crore) and credit risk funds (Rs 350 crore).
Hybrid inflows increase over 3X
Total inflows in hybrid funds increased from Rs 5,580 crore in March 2024 to Rs 18,900 crore in April 2024.
Apart from conservative hybrid fund, all categories received net inflows.
Among these, arbitrage funds received the highest net inflows to the tune of Rs 13,900 crore followed by multi asset allocation funds with net inflows of Rs 3,300 crore.
Index funds net flows improve but ETFs report a decline
Index funds reported an increase in inflows to 6,500 crore in April 2024 from Rs 1,800 crore of inflows in March 2024.
However, the net inflows in ETFs (gold and others) declined. Gold ETFs saw outflows of Rs 396 crore for the first time and other ETFs inflows dropped from Rs,10,559 in March 2024 to Rs 5,700 crore in April 2024.
Other key highlights
- Mutual fund folio stands at 18.14 crore in April 2024. Of this retail folio count across equity, hybrid and solution-oriented schemes was 14.53 crore.
- The total SIP AUM also went up from Rs 10.7 lakh crore to Rs 11.3 lakh crore and the SIP accounts stood at 8.7 crore. Number of new SIPs registered stood at 63 lakh for April 2024.
- 93% of MF accounts have KYC Validated or KYC Registered status, whereas only 3% accounts have 'KYC Hold' status.
- As against 19 open-ended NFOs in March 2024, the MF industry launched 9 such schemes in April 2024. These funds raised a total of Rs 1,530 crore in the last month.
What do experts have to say?
Venkat Chalasani, Chief Executive, AMFI said, "The MF Industry surged to new levels, with Net AUM reaching Rs 57.26 lakh crore and SIP accounts touching 8.70 crores. A historic SIP contribution of Rs 20,371.47 crores taking SIP AUM to Rs. 11.26 lakh crores with 63.65 lakh new SIP registrations showcases investor confidence. With regards to the KYC norms applicable from April 2024, the mutual fund industry is addressing concerns for a smooth process. Together with AMCs, distributors and other stake holders, we are committed to facilitating a seamless KYC validation process for all, thereby ensuring the integrity and accessibility of mutual fund investments across the board."
A Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life said, “India’s mutual fund industry has reached yet another milestone with the SIP book crossing above Rs 20,000 crore in April 2024. It shows the mutual fund industry has received higher acceptance from investors to invest their savings and create wealth in the long-term via the SIP route. Investors have understood that goals can be achieved through mutual fund investing as the industry has been able to provide a great experience to the unit holders. I expect this trend to continue going forward due to the expected economic growth of the country, positive outlook on the equity market and a stable interest rate scenario.”
