Fiscal year 2024 turned out to be a very good year for the domestic mutual funds industry as the industry grew 35 per cent, its best gain since 2021, the Association of Mutual Funds in India (AMFI) revealed in its latest release. In 2021 the industry had gained 41 per cent in just one year. In FY 2024, the mutual industry witnessed remarkable growth, with assets under management (AUM) reaching a record Rs 53.40 lakh crore as of March 2024, a 35 per cent surge from Rs 39.42 lakh crore in March 2023. Individual investors dominated the landscape, with 60 per cent of total AUM compared to institutional investors at 40 per cent. According to the latest AMFI data, women investors account for approximately 23 per cent of the total AUM, while men constitute around 77 per cent.
In terms of categories, equity-oriented mutual funds grew 55 per cent to reach Rs 23.50 lakh crore in AUM led by strong inflows and mark-to-market (MTM) gains. The equity category saw a net worth of Rs 1.84 lakh crore during the fiscal, up from the previous year's Rs 1.47 lakh crore. Also, the equity markets represented by Nifty 50 total return index (TRI) and Nifty 500 TRI gaining 33 per cent and 44 per cent, respectively, during this period have led to this enthusiasm.
Among equity categories multi-cap fund category saw the highest growth of 85 per cent in fiscal 2024, followed by small-cap funds at 82 per cent.
Equity, hybrid, and solution-oriented schemes together accounted for nearly 58 per cent of industry assets and 80 per cent of the folio count as of March 2024. The share of assets of these categories has increased from 45 per cent in March 2019, showcasing their dominance in the growth of industry assets, the AMFI release said.
The monthly net inflows into systematic investment plans (SIPs) continue to rise, reaching approximately Rs 19,300 crore in March 2024, totalling around Rs 2 lakh crore for FY 2024 up from 1.55 lakh crore in the previous fiscal year. Says Venkat Chalasani, Chief Executive, AMFI, "Equity, hybrid, and solution-oriented schemes lead the way, supported by SIPs... As we navigate the dynamic capital markets, our commitment remains firm: to empower investors and promote financial well-being.
Passive funds, particularly exchange-traded funds (ETFs), got inflows from institutional investments. The ETF category has assets worth Rs 6.64 lakh crore as of March 2024. Debt funds grew around 7 per cent during the fiscal year, reaching Rs 12.62 lakh crore in assets after seeing outflows in the previous two fiscal.
