The Indian mutual funds industry achieved a significant milestone in November. Its assets under management (AUM) crossed ₹68.08 lakh crore, up from ₹67.25 lakh crore in October. The Association for Mutual Funds in India (AMFI) reported that active equity schemes contributed ₹30.35 lakh crore. This accounts for 44.5% of the total AUM.
Growth driven by systematic investment plans
Systematic Investment Plans (SIPs) have played a key role in this growth. SIP inflows remained steady at ₹25,320 crore in November, similar to October’s figures. Meanwhile, the number of SIP accounts rose to 10.22 crore, a new record.
Himanshu Srivastava, Associate Director at Morningstar, explained the trend. He stated that domestic investors used market corrections in November as an investment opportunity. Notably, this marked the 45th consecutive month of net inflows into equity mutual funds.
Equity and debt funds performance
Equity-linked Savings Schemes (ELSS) saw an increase in inflows. They rose from ₹362 crore in October to ₹618.5 crore in November. Moreover, mid-cap and small-cap funds recorded month-on-month growth. Mid-cap funds grew by 4.3%, while small-cap funds increased by 9%.
In contrast, debt funds experienced a drop in net inflows. They saw ₹12,915 crore in November, far lower than the ₹1.57 lakh crore recorded in October. According to Mayukh Datta from ITI Mutual Fund, investors shifted their focus to equity funds amid favourable market conditions.
The road ahead for Indian mutual funds
Indian mutual funds continue to see consistent growth. Increasing SIP contributions and sustained investor participation are driving this momentum. The recent AUM milestone reflects the growing trust of domestic investors.
As market dynamics evolve, mutual funds are expected to remain a key part of India’s financial landscape. They offer diverse opportunities for wealth creation and financial growth.
In conclusion, the Indian mutual funds industry is on a remarkable growth trajectory. Consistent SIP contributions, rising investor confidence, and strong equity inflows highlight its potential as a reliable wealth-creation tool.
