Equity Mutual Funds Shatter Records with ₹34,697 Crore Inflows, Surpassing ₹25 Lakh Crore Mark in May 2024

view original post

You’re reading Entrepreneur India, an international franchise of Entrepreneur Media.

The mutual fund industry’s net assets under management (AUM) for May 2024 reached INR 58,91,160.48 crore, showing a considerable increase from INR 57,25,897.98 crore in April 2024. This 2.8 per cent upward trend reflects the growing investor confidence and market performance.

In a conference call on June 10, Venkat Chalasani, Chief Executive, AMFI highlights significant growth and records in various sectors, “The Mutual Fund Industry continues its upward trajectory. The Net AUM stands at INR 58.91 lakh crores in May 2024, marking significant growth of INR 1.65 lakh crore over the previous month. An all-time high record of INR 20,904.37 crores in systematic investment plans (SIPs) contribution, a peak of 8.76 crore SIP accounts, and 39 months of positive equity inflows highlights that the industry is set for continued expansion. Systematic investment plans (SIPs) account for 19 per cent of the net flows. Equity mutual funds saw inflows of INR 34,697 crore in May, the highest monthly net flows in the category on record for category, up 83 per cent from April. The net flows in equity oriented mutual funds, took the segment past the INR 25 lakh crore mark, to close at their record high of INR 25.39 lakh crore in May 2024.”

Mutual Fund Folios

The total number of mutual fund folios hit an all-time high of 18,59,68,222 in May 2024. Within this, retail mutual fund folios (comprising equity, hybrid, and solution-oriented schemes) also surged a 2.47 per cent record high of 14,89,54,824 up from 14,53,57,892 in April 2024.

The industry has witnessed 39 consecutive months of positive equity inflows starting from March 2021. In May 2024 alone, growth equity fund inflows amounted to INR 34,697 crore, indicating sustained investor interest in equity markets.

Equity mutual funds experienced substantial inflows of INR 34,697 crore in May, marking the highest monthly net flows ever recorded for the category and an 83 per cent increase from April. This surge propelled the segment beyond the INR 25 lakh crore milestone, closing at a record high of INR 25.39 lakh crore in May 2024.

Chalasani also added that political stability creates an environment conducive to sustainable economic growth, attracting investments and fostering long-term investments. Global growth is sustaining its momentum in 2024 and is likely to remain resilient, supported by rebound in global trade. The overall outlook for Indian capital markets remains positive, supported by strong fundamentals, and favourable demographics.

Average AUM

The Average Assets Under Management (AAUM) for May 2024 stood at INR 58,59,951.39 crore, up from INR 57,01,358.87 crore in March 2024. The 2.7 per cent consistent rise in AAUM underscores the sustained inflows and robust management of mutual funds in the country.

Retail AUM for equity, hybrid, and solution-oriented schemes was reported at INR 33,73,427 crore for April 2024, with an average AUM of INR 33,62,885 crore. This indicates strong retail participation and confidence in mutual fund investments.

Surge in SIPs

May 2024 saw the registration of 49,74,400 new systematic investment plans (SIPs), contributing to the highest ever SIP AUM of INR 11,52,801 crore, compared to INR 11,26,129 crore in April 2024. The SIP contribution for May 2024 hit an all-time high of INR 20,904.37 crore, slightly up from INR 20,371.47 crore in April 2024. The number of SIP accounts also reached a record high of 8,75,89,485 in May 2024, up from 8,70,11,401 in the previous month.

New Scheme Launches

In May 2024, a total of nine new schemes were launched in the open-ended category, raising INR 10,140 crore. This reflects the industry’s continuous innovation and efforts to offer diverse investment opportunities to investors.

The AMFI data for May 2024 paints a picture of a robust and growing mutual fund industry in India, marked by record-breaking metrics and sustained investor participation. The consistent growth in AUM, SIP contributions, and retail folios indicates a strong foundation for future expansion and stability in the mutual fund market.