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AMFI data shows some encouraging numbers of the MF industry.
The data shows that the AUM of the MF industry is inching close to Rs.70 lakh crore. The industry has recorded AUM of Rs.68.50 lakh crore in October 2024.
Another good news is that the MF industry now receives monthly gross SIP inflows of over Rs.25,000 crore. The data shows that the monthly gross SIP inflows has also reached an all-time high of Rs. 25,300 crore in October 2024.
Venkat Chalasani, Chief Executive, AMFI said, “The continued surge in SIP accounts, now exceeding 10.12 crore, along with a record monthly SIP contribution of Rs. 25,322.74 crore, demonstrates the growing preference for disciplined investing among Indian investors.”
Overall, the industry records a total net inflow of Rs. 2.40 lakh crore in October 2024. Also, mutual fund folio count is also at all-time high of 21.65 crore, with retail MF folios at 17.23 crore.
In terms of NFOs, a total of 29 schemes have raised Rs. 6,100 crore last month.
Let us look at the key highlights of the month gone by:
Equity funds
Equity schemes have attracted substantial net inflows of Rs. 42,000 crore, the highest inflows this financial year. As a result, the AUM of equity schemes now stands at Rs. 30.40 lakhs crore.
In terms of inflows, thematic funds emerge as investors’ favourite by attracting net inflows of Rs. 12,000 crore, while small-cap and mid-cap funds continue to attract significant net inflows of Rs. 3,800 crore and Rs. 4,700 crore respectively.
Flexi-cap sees net inflows of Rs. 5,200 crore.
Debt funds
The debt funds AUM reaches Rs. 16.80 lakh crore by recording substantial net inflows of Rs. 1.57 lakh crore largely due to liquid funds which see net inflows of Rs. 84,000 crore.
Other short term funds like overnight funds and money market funds have recorded net inflows of Rs. 26,000 crore and Rs,25,000 crore, respectively.
Among other debt fund categories, corporate bond funds record net inflows of Rs.4,600 crore.
Hybrid funds
Hybrid funds have witnessed net inflows of Rs. 17,000 crore. Within this category, arbitrage funds receive net inflows of Rs. 7,200 crore followed by multi-asset funds and balanced advantage funds with net inflows of Rs. 3,800 crore and Rs. 2,500 crore, respectively.
Passive funds
Passive funds have an AUM of Rs. 11.30 lakh crore and received net inflows of Rs. 23,400 crore.
While index funds have seen net inflows of Rs. 8,000 crore, ETFs (excluding gold) received Rs. 13,400 crore. Gold ETFs also have seen net inflows of Rs. 2,000 crore.
Manish Mehta, National Head - Sales, Marketing & Digital Business, Kotak Mahindra MF, said “Industry net sales numbers came in strongly aided by NFO listings in the sectoral category. Large cap biased schemes continue to see inflows. Distributors continue to guide investors to navigate market volatility through SIPs / STPs and occasional one-time purchases on days when markets witnessed corrections.”
Akhil Chaturvedi, Executive Director & Chief Business Officer, Motilal Oswal MF, said, “The equity inflows continue to be stable around 40k crore net sales on monthly basis. The flows apart from NFO which were healthy at 15k crore is also diversified across market cap buckets. We have seen heightened volatility in markets with FII selling due to major global events including USA elections. The healthy net flows is a testimonial to the resilience amongst domestic investors to continue investing in equities despite market volatility.”
Hitesh Thakkar, Acting CEO, ITI MF, said, “Indian mutual fund industry is at an all-time high AUM. The month shows investors have preferred hybrid funds due to the ongoing volatility in the equity markets. We are positive on the Indian economy and India's equity market will deliver a reasonably good return while comparing with other emerging markets. The Trump presidency in the US is broadly positive for us. We believe that the market is volatile due to short term factors like weak domestic earning cycle, delayed government spending for capital intensive sectors etc. However, investors should continue investing in equity mutual funds with a 3-5 years’ time horizon.”
