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The Indian Mutual Fund industry remains on a positive trajectory, driven by consistent SIP inflows and growing investor confidence in equity markets. The industry’s ability to weather market volatility and offer diverse investment options positions it as a key player in wealth creation for Indian investors.
SIPs, a popular method for regular investment, continued to drive growth, with the number of new SIPs reaching 55.13 lakh and total SIP AUM reaching an all-time high of ₹12.44 lakh crore. Sectoral/Thematic funds led inflows with ₹22,351 crore, boosted by new fund offerings (NFOs). Multicap, Large cap, and Mid cap funds also saw significant inflows, while Small cap funds experienced a decline. June witnessed initial volatility due to election results, with benchmark indices dropping sharply before recovering and closing the month with a gain of around 7%. Debt funds, excluding money market and low-duration funds, saw net outflows attributed to advance tax payments and quarter-end activities.
The Indian Mutual Fund industry witnessed significant growth in June 2024, with key highlights including:
- Surge in equity investments: Equity mutual funds saw a record inflow of ₹40,608 crore, up 17% from May. This marks the 40th consecutive month of positive inflows for equity funds.
- SIPs reach new milestone: Systematic Investment Plans (SIPs) reached a new high of ₹21,262 crore, surpassing the ₹20,000 crore mark for the third month in a row.
- Industry AUM crosses ₹60 lakh crore: Total Assets Under Management (AUM) for the industry reached a record ₹61.16 lakh crore, exceeding the ₹60 lakh crore mark for the first time.
- Debt outflows: Debt Funds experienced net outflows of ₹1,07,357 crore, primarily due to advance tax payments and quarter-end adjustments.