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An analysis of AMFI data by Cafemutual shows that 2024 has recorded the highest growth in MF assets in the last 10 years (2015-2024).
The year saw MF AUM grow from Rs. 49.23 lakh crore in January 1 to Rs. 68.62 lakh crore in December 31. This shows an increase in AUM of Rs. 19.39 lakh crore, about 40%.
The second highest growth rate of MF assets during these 10 years was recorded in 2017. The year saw an increase of 32% in MF AUM from Rs. 16.93 lakh crore in January to Rs. 22.36 lakh crore in December.
2021 recorded the third highest growth in MF AUM at 29%. The industry assets saw an increase from Rs. 29.70 lakh crore in January to Rs. 38.20 lakh crore in December.
Other years that saw high growth include 2016 (26%) and 2023 (22%). The growth data of the entire period is shared in the below table:
|
Year |
January 1 AUM (in crore) |
December 31 AUM (in crore) |
Growth |
Growth (%) |
|
2024 |
49,22,620 |
68,61,745 |
19,39,125 |
39% |
|
2017 |
16,93,412 |
22,36,174 |
5,42,762 |
32% |
|
2021 |
29,70,441 |
38,19,820 |
8,49,379 |
29% |
|
2016 |
13,40,971 |
16,93,412 |
3,52,441 |
26% |
|
2023 |
40,26,135 |
49,22,620 |
8,96,485 |
22% |
|
2015 |
11,06,608 |
13,40,971 |
2,34,363 |
21% |
|
2019 |
23,60,597 |
26,76,527 |
3,15,930 |
13% |
|
2020 |
26,76,527 |
29,70,441 |
2,93,914 |
11% |
|
2018 |
22,36,174 |
23,60,597 |
1,24,423 |
6% |
|
2022 |
38,19,820 |
40,26,135 |
2,06,315 |
5% |
A Balasubramaniam, CEO, ABSL MF thinks that investors generally invest keeping the returns of the last three years in mind. As the last three years before 2024 gave good returns, the year saw the highest inflows, which led to a high growth in AUM.
Swarup Mohanty, Vice-Chairman and CEO, Mirae Asset MF believes that the high growth in 2024 has been due to a combination of high inflows and market appreciation. He also thinks that the growth of SIP book has contributed to the growth. He adds that growth across market segments has led to increase in investment in mutual funds.
When it comes to high growth in 2021, he thinks the comeback of the equity markets after COVID was the main reason for it.
Sandeep Bagla, CEO, Trust MF believes that the healthy growth of mutual fund industry in 2024 has been due to various factors like the beginning of the rate cut cycle by the US FED, launch of numerous NFOs and the public euphoria to invest in MFs due to good performance of the equity market. Besides, he also attributed the growth to a shift of investors from traditional savings to MFs.
When it comes to the high growth rate in 2017, Sandeep attributes it to the boost received by listed companies by the shift of business from unorganized sector to organized sector due to GST implementation.
