December 25, 2024
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Mutual fund AUM surges Rs 17 trillion in 2024
Following a stellar performance in 2023, the mutual fund industry continued its growth trajectory in 2024, with assets surging by an impressive Rs 17 lakh crore. This remarkable growth was fueled by strong equity market performance, robust economic expansion, and increasing investor participation. Experts are optimistic that this positive trend will extend into 2025, with continued growth in both retail investor penetration and equity fund flows, particularly through Systematic Investment Plans (SIPs).
In 2024, the mutual fund industry saw a net inflow of Rs 9.14 lakh crore, alongside a significant 5.6 crore increase in the number of investors. SIPs, in particular, saw a surge, contributing Rs 2.4 lakh crore to the inflows, according to data from the Association of Mutual Funds in India (AMFI). This influx of funds propelled the industry’s assets under management (AUM) to an all-time high of Rs 68 lakh crore by November-end, a 33% increase from Rs 50.78 lakh crore at the close of 2023.
This growth significantly outpaced the 27% rise and Rs 11 lakh crore AUM addition in 2023, as well as the more modest growth observed in earlier years. In 2022, the industry experienced a 7% growth and a Rs 2.65 lakh crore increase in AUM, while in 2021, it saw nearly 22% growth, with an addition of Rs 7 lakh crore.
Over the last four years, the mutual fund industry has added an impressive Rs 30 lakh crore to its AUM, reflecting the sector’s consistent upward momentum. As of November 2024, the industry’s AUM reached Rs 68 lakh crore, up from Rs 50.78 lakh crore at the end of 2023, though December’s numbers will be available in early 2025.
The year 2024 marked the 12th consecutive annual rise in industry AUM, following two years of decline. Growth this year was largely driven by inflows into equity schemes, particularly through SIPs, highlighting the growing trend of financialisation and increased participation in equity markets and mutual funds.
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https://sahifund.com/mutual-funds-increase-exposure-to-banking-it-stocks/