Individual investors played a pivotal role in driving the growth trajectory, particularly in equity, hybrid, and solution-oriented schemes, which collectively accounted for nearly 58% of industry assets and 80% of folio count by March 2024.
FinTech BizNews Service
Mumbai, April 16, 2024: Fiscal year 2024 has emerged as a landmark period for the domestic mutual funds industry, witnessing a remarkable surge in assets under management (AUM) by nearly Rs 14 lakh crore, reaching a record high of Rs 53.40 lakh crore as of March 2024, compared to Rs 39.42 lakh crore in March 2023.
The industry experienced an impressive growth rate of over 35%, the highest since fiscal 2021. This surge was complemented by a significant increase in the number of investors, with number of folios reaching a record high of 17.78 crore, translating to an investor base of approximately 4.46 crore. Notably, women constituted approximately 23% of investors, while men accounted for around 77% (as per February 2024 data)
Individual investors played a pivotal role in driving the growth trajectory, particularly in equity, hybrid, and solution-oriented schemes, which collectively accounted for nearly 58% of industry assets and 80% of folio count by March 2024. This underscores the increasing participation of households in the capital markets through mutual funds.
Equity-oriented categories witnessed a substantial growth of 55% during fiscal 2024, reaching Rs 23.50 lakh crore in assets, propelled by robust inflows and mark-to-market gains. The Flexi cap category emerged as the largest fund category, followed closely by large cap funds, with multi cap funds experiencing the highest growth rate of 85%.
Hybrid funds also made significant strides, crossing the Rs 7 lakh crore mark with asset gains exceeding 50%. This growth was driven by investors adopting an asset allocation approach and leveraging arbitrage opportunities in the market. Dynamic asset allocation / balanced advantage funds emerged as the largest category within the hybrid funds segment.
Passive funds continued to benefit from institutional investment flows, particularly into exchange-traded funds (ETFs) from investors such as provident funds. ETFs as a category have assets of Rs 6.64 lakh crore as of March 2024. However, debt funds saw moderate growth of around 7% during the fiscal year, reaching Rs 12.62 lakh crore in assets, after experiencing contractions in the previous two fiscal years.
Investor adoption of systematic investment plans (SIPs) continued to rise, with monthly net inflows touching approximately Rs 19,300 crore in March 2024. For fiscal year 2024, net inflows through SIPs stood at nearly Rs 2 lakh crore, demonstrating increasing investor confidence and commitment to disciplined investing.
Overall, fiscal 2024 reflects a period of robust growth and resilience for the mutual funds industry, underpinned by the growing participation of individual investors, buoyant equity markets, and evolving investment strategies.
Venkat Chalasani, Chief Executive, AMFI, explains: "The mutual funds industry saw significant growth, adding nearly Rs 14 lakh crore and reaching Rs 53.40 lakh crore in assets. With trust from over 4.46 crore investors, the industry is focused on informed investments. Equity, hybrid, and solution-oriented schemes lead the way, supported by SIPs with a monthly net inflow of around Rs 19,300 crore in March 2024 and reaching Rs 10.71 lac crore in assets under management. As we navigate the dynamic capital markets, our commitment remains firm: to empower investors and promote financial well-being."
