New Delhi, Dec 24 (PTI) After a stellar 2023, the mutual fund industry sustained its growth momentum in 2024 with an impressive ₹17 lakh crore surge in assets, driven by buoyant equity markets, robust economic growth, and increasing investor participation. Experts are predicting the positive trend will extend into 2025.

Bạn đang xem: Mutual fund industry on a high; asset surges ₹17 lakh cr in 2024

Kaustubh Belapurkar, Director-Manager Research at Morningstar Investment Research India, said, “The mutual fund industry’s assets are expected to continue growing at a healthy pace in 2025. With rising penetration among retail investors, flows into equity funds, particularly through Systematic Investment Plans (SIPs), are likely to remain robust.”

The year 2024 saw a substantial net inflow of ₹9.14 lakh crore, alongside a significant 5.6 crore increase in investor count and a growing popularity of SIPs, which alone contributed ₹2.4 lakh crore, according to data from the Association of Mutual Fund Industry (Amfi).

The inflows lifted the industry’s assets under management (AUM), reaching an all-time high of ₹68 lakh crore by November-end, marking a 33 per cent growth over the ₹50.78 lakh crore registered at the end of 2023.

This growth was way higher than 27 per cent rise and ₹11 lakh crore addition in AUM in 2023, as well as the more modest growth in previous years.

The industry saw a 7 per cent growth and ₹2.65 lakh crore increase in AUM in 2022, as well as nearly 22 per cent growth and close to ₹7 lakh crore addition to the asset base in 2021.

Over the last four years, the industry has collectively added an impressive ₹30 lakh crore to its AUM.

As per the data, the AUM of the mutual fund industry rose to an all-time high of ₹68 lakh crore in 2024 (till November-end) from ₹50.78 lakh crore at the end of December 2023. This year’s tally does not include December number which will come out in the first week of 2025.

The asset base stood at around ₹40 lakh crore at the end of December 2022, ₹37.72 lakh crore at the end of December 2021 and ₹31 lakh crore in December 2020.

Xem thêm : China rolls out private pension scheme and adds index funds

The 2024 also marked the 12th consecutive yearly rise in the industry AUM after a drop in two preceding years. This year growth in the industry was supported by inflows in equity schemes, especially Systematic Investment Plans (SIPs).

Over the last four years, the mutual fund industry has collectively added an impressive ₹30 lakh crore to its AUM, showing the sector’s consistent upward trajectory.

“The growing trend of financialisation has led to a significant growth in participation in equity markets and mutual funds, as reflected in the significant growth of AUM in the mutual fund industry,” said Ganesh Mohan, CEO of Bajaj Finserv AMC.

“This shift is supported by the Indian economy’s expansion and increasing financial awareness among retail investors, who are seeking higher returns at lower costs and with greater convenience,” he added.

The 45-player industry saw a total inflow of ₹9.14 lakh crore in 2024 (till November) as compared to an inflow of over ₹2.74 lakh crore last year. The huge inflow could be on the back of sustained investor interest in equity funds, arbitrage funds, and index funds & ETFs.

This year’s flows included an investment of ₹3.53 lakh crore in equity-oriented schemes, ₹1.44 lakh crore in hybrid schemes, and around ₹2.88 lakh crore in debt schemes.

Equity schemes, which were the most attractive factor for investors in the mutual fund space in 2024, schemes have been witnessing incessant net inflow on a monthly basis since March 2021.

The contribution of equity markets has also been key, with the Nifty 50 and BSE Sensex indices rising 8.5 per cent and 8 per cent, respectively, in 2024.

The net inflows into equity-oriented schemes stood at ₹3.53 lakh crore, driven by sustained investor confidence and the structural shift toward long-term, disciplined investing through SIPs.

Monthly SIP contributions consistently surpassed the ₹25,000-crore mark in October and November, signalling their growing appeal.

Xem thêm : Year-ender 2024: Top 5 ELSS mutual funds offer over 25% return, Motilal Oswal ELSS Tax Saver Fund offer 45% return

“Investment through SIP into equity funds has become the default nature of investing for predominant Indian investors on back of structural shift in savings pattern, and equity markets continuing on the decadal growth trajectory is an established trend in India,” Akhil Chaturvedi, ED & CBO, Motilal Oswal AMC, said.

Notably, sectoral and thematic funds emerged as major attractions, with their AUM growing 79 per cent to ₹4.61 lakh crore in 2024 from ₹2.58 lakh crore in December 2023. These funds benefited from heightened retail interest, supported by ₹1.4 lakh crore in inflows, including ₹67,000 crore raised through 40 new fund offerings (NFOs), Morningstar’s Belapurkar said.

On the debt side, categories like liquid, ultra-short, and low-duration funds saw robust inflows, driven primarily by institutional investors seeking short-term liquidity. Meanwhile, retail investors showed renewed interest in gilt and dynamic duration funds, anticipating potential rate cuts in early 2025.

Gold investments also gained traction, with inflows of ₹9,500 crore as investors sought safety amid economic uncertainties, geopolitical tensions, and changes in taxation norms.

Aashish Somaiyaa, CEO of WhiteOak Capital AMC, noted that gold’s appeal as a portfolio hedge has been further boosted by its integration into multi-asset allocation funds.

“At the same time given there has been uncertainty of US monetary policy, time to time USD weakness and geopolitical fault lines being exposed, gold is always a safe haven to have in client portfolios,” he added.

Starting April 2025, Gold ETFs will be taxed as per investor’s tax slab for a holding period of less than 1 year and at 12.5 per cent for a holding period of more than 1 year, bringing them on par with taxation for equity, Vishal Jain, CEO, Zerodha Fund House, said.

Adding to the industry’s vibrancy, the regulatory environment played a key role.

Sebi has introduced measures to boost mutual fund penetration and oversight. The MF Lite framework simplifies setting up asset management companies, encouraging new players in passive funds. The new ‘Specified Investment Funds’ asset class enables boutique products to reach more investors with a reduced minimum ticket size of ₹10 lakh, compared to ₹50 lakh for PMS and ₹1 crore for AIFs.