Are Indian Mutual Fund Investors Chasing Returns? Amfi Data Says So

Sectoral and thematic funds seem to be most favoured by Indian mutual fund investors in June 2024. As many as nine new schemes were launched and the category saw the highest net inflows of Rs 22,351 crore, with multi-caps coming at a distant second with net inflows of Rs 4,780 crore
Indian Mutual Fund Investors Chasing Returns
Indian Mutual Fund Investors Chasing Returns

Sectoral and thematic funds seem to be the flavour of the season for Indian mutual fund investors. This category saw the highest net inflows in India in the month of June 2024 – a massive Rs 22,351 crore – the highest within the equity category. Multi-cap funds came a distant second with net inflows of Rs 4,780 crore, with flexi-caps taking the third spot with net inflows of Rs 3,058 crore.

Large-caps were second best among equity mutual funds that had net inflows in the positive at Rs 970 crore, just marginally better than dividend yield funds, which had net inflows of Rs 520 crore.

Sectoral/Thematic Funds Pips Others In Folios, Number Of Schemes

Sectoral/thematic funds also beat other funds in terms of the number of folios, as well as the number of schemes launches.

The number of folios was the largest for sectoral and thematic funds – 22.49 million for June 2024. On second spot was small-cap fund with 20.29 million folios, followed by mid-caps at fourth place with 15.27 million folios, and large-cap funds at sixth place with 14.12 million folios.

In terms of the number of new schemes launched in June 2024, as many as nine schemes were launched in the sectoral/thematic category, with a total mobilisation of Rs 12,974 crore. Only one scheme each was mobilised in the multi-cap and small-cap space, mobilising Rs 1,051 crore and Rs 345 crore, respectively.

The new schemes launched in the thematic/sectoral category are: Aditya Birla Sun Life Quant Fund, Baroda BNP Paribas Manufacturing Fund, Helios Financial Services Fund, Kotak Special Opportunities Fund, Mahindra Manulife Manufacturing Fund, Motilal Oswal Quant Fund, Samco Special Opportunities Fund, SBI Automotive Opportunities Fund, and WhiteOak Capital Special Opportunities Fund, according to a release from the Association of Mutual Funds in India (Amfi).

Highlights Of Mutual Fund Industry - June 2024

Here are the highlights of the Amfi mutual fund industry monthly data for June 2024.

The net assets under management (AUM) of the mutual fund industry for the month of June 2024 was Rs 61,15,581.92 crore, up from Rs 58,91,160.48 crore in May 2024. The average AUM for June was Rs 61,33,226.77 crore, up from Rs 58,59,951.39 crore the previous month. Retail AUM, including equity, hybrid and solution-oriented schemes) stood at Rs 36,32,226 crore, with an average AUM of Rs 35,69,980 crore.

The number of mutual fund folios in June were at an all-time high at 191.04 million. Retail mutual fund folios, including equity hybrid and solution-oriented schemes were also at an all-time high at 153.25 million, as against 148.95 million in May 2024.

In all, there was positive equity inflows for 40 months, starting from March 2021. The growth in equity fund inflows for the month of June was Rs 40,608.19 crore

The number of SIP accounts in June were recorded at their highest ever at 89.86 million as against 87.58 million in May 2024. The number of SIPs registered in June 2024 were 5.51 million. The SIP AUM was also at its highest-ever at Rs 12,43,791.71 crore, as against Rs 11,52,801 crore in for May 2024. The SIP contribution stood at an all-time high of Rs 21,262.22 crore in June 2024 as against Rs 20,904.37 crore in May 2024.

A total of 17 schemes were launched in June 2024, all in the category of open-ended schemes, raising a total of ₹ 15,227 crore.

Venkat Chalasani, chief executive, Amfi, said: “The mutual fund industry has demonstrated remarkable growth, becoming a cornerstone of financial stability and wealth creation for millions of investors. The industry continued to benefit from sustained flows into equity-oriented mutual funds, hybrid funds and passive funds. Equity fund inflows stood at a record high of Rs 40,608 crore, while SIP inflows touched a new high of Rs 21,262 crore. This expansion reflects the industry’s unwavering commitment to investor education, strong distribution, and digital innovation. As we continue to adapt and evolve in a dynamic market environment, we remain dedicated to fostering financial well-being for all our stakeholders.”

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