In recent years, India's mutual fund industry has witnessed remarkable growth, with increasing investor participation and a significant surge in total assets under management (AUM). The latest data from the Association of Mutual Funds in India (AMFI) released on November 9, 2023, revealed the industry's net AUM at Rs 46,71,687 crore and the average AUM at Rs 47,80,422 crore by the end of October 2023. One notable achievement is the addition of over 25.50 lakh crore investors, with the MF folios reaching an all-time high of 15,96,46,790 in October 2023.
N.S. Venkatesh, CEO of AMFI, highlights the industry's upward trend said: "Despite peaking interest rates, there's a notable surge in money market investments. Investors exhibit optimism in Gilt funds and a remarkable increase in contributions to small-cap funds, indicating strong confidence. The large-cap category has also witnessed a noteworthy resurgence, reflecting a broader market recovery. SIP numbers show consistent month-on-month growth, underlining the strength of systematic investment plans.”
Retail mutual fund folios, including Equity, Hybrid, and Solution-Oriented Schemes, also reached an all-time high, adding over 20 lakh MF folios, taking the total to 12.74 crore.
The systematic investment plan (SIP), a key indicator of retail participation, recorded an all-time high monthly inflow of Rs 16,927.86 crores for October 2023. The number of new SIPs registered in October 2023 were 34,66,354. The release said the number of net SIPs added in October 2023 was 17,08,866, which is the highest to date.
Equity-oriented funds continue to see net inflows for the 32nd consecutive month, with Rs 80,586 crore in October 2023. Arbitrage funds witnessed the highest inflows in the equity asset class of Rs 5,523 crore, followed by small-cap funds at Rs 4,495 crore. “We are confident in continued inflows into small and mid-cap funds, given the untapped potential in these segments," Venkatesh says.
The festive month also saw inflows of Rs 841 crores in Gold ETFs, up from Rs 175 crore in September 2023.
A total of 14 schemes were launched in October 2023, all in the open-ended scheme category, raising a total of Rs 3,638 crores. Looking ahead, the AMFI CEO says that the high SIP account openings indicate a growing, committed investor base.