The mutual fund industry achieved a new milestone in September 2024, with assets under management (AUM) reaching an all-time high of Rs 67.90 lakh crore. This growth, up from Rs 66.70 lakh crore in August, represents a 0.58% increase, according to the latest Association of Mutual Funds in India (AMFI) report.
Equity Market Gains Drive Growth
The positive performance of the equity market was crucial to AUM’s growth. The Nifty 50 and BSE Sensex closed the month over 2% higher, delivering significant mark-to-market (MTM) gains. Equity-oriented schemes saw robust inflows and ended the month at a record Rs 31.10 lakh crore, which accounts for 46% of the total industry AUM. Sectoral and thematic funds were the stars, with new fund offers (NFOs) leading the way in terms of inflows.
Debt Schemes See Mixed Results
Within debt-oriented schemes, there were outflows from funds with maturities of less than one year, such as liquid, overnight, and money market funds. This was mainly due to corporates and banks meeting quarter-end tax requirements. However, long-duration funds experienced growth, driven by inflows and MTM gains, as rate cut expectations remained strong. Notably, corporate bond funds recorded net inflows of Rs 5,039 crore in September, a sharp increase from Rs 667 crore in August.
Hybrid and Passive Funds Hit New Highs
Hybrid schemes also hit a fresh high, with assets reaching Rs 8.75 lakh crore. Equity savings schemes led the inflows, logging their highest-ever inflows of Rs 2,269 crore. The passive funds category surged to a record Rs 11.46 lakh crore, making up 17% of the total industry AUM. Gold ETFs, benefiting from geopolitical tensions and low US bond yields, saw a 6.5% growth, reaching Rs 39,823 crore in assets.
Folio and SIP Accounts Continue to Grow
Investor participation continues to expand, with nearly 60 lakh folio accounts added in September, taking the total to 21.05 crore. Equity-oriented schemes saw the most additions, while passive funds also attracted significant new accounts.
Systematic Investment Plan (SIP) contributions reached an all-time high of Rs 24,509 crore, helping SIP assets grow by 3.2% to Rs 13.82 lakh crore. Over 26 lakh new SIP accounts were added, further solidifying the role of SIPs in long-term wealth creation, with SIP assets now comprising 20% of the total industry AUM.
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AMFI’s Vision for Continued Growth
Venkat N Chalasani, Chief Executive of AMFI, highlighted the industry’s robust performance, saying, “The mutual fund industry has reached Rs 67.90 lakh crore in assets, with over 5 crore unique PAN holders. SIP contributions have hit a record high, reflecting the growing preference for disciplined investment strategies.”
He added, “Our focus on transparency and adapting to investor needs is stronger than ever. Mutual funds will continue to play a key role in stabilising India’s equity markets and helping investors achieve long-term wealth creation.”
The mutual fund industry’s impressive growth showcases investors’ increasing confidence. With continued support, it is poised to continue delivering strong returns and financial security.
FAQs
Ans: AUM is the total assets under a fund’s management, while NAV (Net Asset Value) represents the per-unit price of the fund’s assets.
Ans: AUM is calculated by adding the total market value of all assets a fund manages, including cash, securities, and accrued earnings.
Ans: A high AUM generally indicates investor confidence and fund stability. However, it could also mean slower growth if the fund becomes too large to manage efficiently.
