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The latest AMFI data shows that the average AUM of the MF industry has reached Rs. 69.33 lakh crore in December 2024. This is an almost 40% increase in average AUM over the last one year.
Further, the industry has recorded the second highest monthly equity inflows of all time of Rs. 41,200 crore. Among equity schemes, sectoral and thematic funds saw the highest inflows of Rs. 15,300 crore. Mid cap funds saw inflows of Rs. 5,100 crore. Flexi cap funds and small cap funds recorded inflows of Rs. 4,700 crore each.
Let us look at other key highlights of the industry.
Hybrid funds
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Hybrid AUM has increased from Rs. 9.16 lakh crore in November 2024 to Rs. 9.31 lakh crore in December 2024
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Hybrid schemes saw a total net inflow of Rs. 4,370 crore
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Among hybrid schemes, multi asset allocation funds saw the highest net inflows of Rs. 2,570 crore while balanced advantage funds were next with net inflows of Rs. 1,600 crore
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Equity savings funds saw inflows of Rs. 450 crore
Passive funds
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Passive AUM has increased from Rs. 11.18 lakh crore in November 2024 to Rs. 11.32 lakh crore in December 2024
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Passive schemes saw a net inflow of Rs. 784 crore during the month
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Index funds saw the highest net inflow among passive schemes of Rs. 4,800 crore while other ETFs saw a net outflow of Rs. 4,560 crore during the month
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Gold ETFs saw net inflows of Rs. 640 crore
MF folios
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Mutual fund folios have reached 22.50 crore in December 2024
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Retail folios in equity, hybrid and solution-oriented schemes have increased from 17.55 crore in November 2024 to 17.90 crore in December 2024
SIPs
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SIP AUM of the industry has reached Rs. 13.63 lakh crore in December 2024
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Monthly SIP contribution has increased from Rs. 25,320 crore in November 2024 to Rs. 26,460 crore in December 2024
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54.27 lakh new SIPs were registered during the month
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The number of SIP accounts has increased from 10.23 crore in November 2024 to 10.32 crore in December 2024
NFOs
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The industry saw the launch of 33 open-ended schemes
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Out of them, 14 were passive schemes. This included 12 new index funds, 2 other ETFs
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Equity schemes saw 13 new NFOs out of which 12 were sectoral/thematic funds while the remaining was of a multi cap fund
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Hybrid schemes saw 3 new launches with multi asset allocation recording 2 new funds while arbitrage funds saw the launch of 1 new scheme
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Overall, open-ended schemes mobilized Rs. 13,640 crore through these NFOs.
Akhil Chaturvedi, Executive Director & Chief Business Officer, Motilal Oswal MF
In December, the Indian mutual fund industry witnessed strong demand for equity funds, particularly small-cap and sectoral/thematic funds while overall open-ended mutual funds faced net outflows. The fixed-income and debt segments experienced significant outflows, reflecting a broader shift in investor sentiment. Despite this, the industry’s assets under management remained substantial, indicating resilience. The equity segment was further buoyed by inflows from new fund offers, with passive funds leading the charge. Additionally, small-cap funds saw a notable uptick in demand, although other categories like multi-cap, large-cap, and large & mid-cap funds experienced a decline in investor interest.
Anand Vardarajan, Chief Business Officer, Tata Asset Management (photo attached).
Sectoral funds continue to shine with NFOs driving bulk of the flows. Debt has been negative across categories, with the most impact in liquid and ultra-categories, primarily due to quarter-end outflows and tax payments. Equity mutual funds have seen very strong flows across categories, and investors seem to have bought into the market correction in December.
Jatinder Pal Singh, CEO, ITI Mutual Fund
Despite muted equity market performance during the month of December 2024, inflows in open ended equity funds stayed in the positive zone for the 46th month in a row. Gross inflows into active equity schemes was up 17% in Dec 2024 vs Nov 2024 (month on month) crossing Rs. 72,000 crores while net flows were recorded at Rs. 41,156 crores. This increase can be attributed to the 70% absolute growth in gross inflows into sectoral / thematic equity schemes, most of which can be attributed to NFOs.
Manish Mehta, National Head - Sales, Marketing & Digital Business, Kotak Mahindra AMC
Industry numbers were about Rs.6000 crore higher than the previous month. The culmination of NFOs, SIPs and lump sum purchase led to an increase in net sales numbers. Investor confidence in mutual funds as an efficient tool for investments continues to remain strong. The widening product suite is facilitating investors to take an investment call basis their risk profile.
Sanjay Bembalkar, Head - Equity at Union Asset Management Company Private Limited-
Mutual Fund AUM flow momentum has continued to be quite active & strong. Notably, all the equity-oriented categories have seen positive flows for the month which underscores maturity of Indian investors and behaviour change considering backdrop of market volatility and economic slowdown. These numbers indicate structural change in investing culture, thought process maturity and awareness among investors.
Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset MF
Despite market volatility, SIP numbers have remained strong, reflecting retail investor confidence in long-term investments in India. The almost 50% growth in SIPs over the past year is a testament to the strong conviction of investors. We've also seen significant interest in sectoral and thematic funds with mid and small cap segments attracting robust flows. Looking ahead, we believe a balanced allocation of large, mid, and small caps is essential for wealth generation and investors should focus on forward-looking returns rather than historical performance.
Venkat Chalasani, Chief Executive, AMFI
Despite volatile market conditions, equity-oriented schemes continued to see strong inflows, reflecting investors’ confidence and commitment to stay invested for the long term. This behavior highlights the growing maturity of investors. The SIP contribution reached an all-time high in December 2024 reflecting investors' steadfast commitment to their financial goals. The record-breaking mutual fund folios in December underscores investors’ confidence in the industry's ability to deliver long-term value despite short-term fluctuations.
