Equity mutual fund inflows soar to ₹4L crore in 2024
What's the story
Equity mutual funds in India witnessed a massive surge in inflows last year, almost doubling to ₹4 lakh crore from the previous year's number.
The surge reflects strong investor confidence and a continued shift toward long-term investing, especially via systematic investment plans (SIPs).
The numbers were disclosed by the Association of Mutual Funds in India (AMFI), which said total inflow into equity and equity-oriented schemes stood at ₹3.94 lakh crore for 2024, up from ₹1.61 lakh crore in 2023.
Asset growth
Mutual fund industry's AUM sees 40% growth
The massive surge in inflows resulted in a 40% rise in the assets under management (AUM) of the mutual fund industry.
The AUM stood at ₹30.57 lakh crore by December 2024, up from ₹21.8 lakh crore in 2023.
This growth has been largely credited to steady market performance, better financial literacy, and the growing adoption of SIPs, which provide a disciplined approach to investing.
Fund performance
Thematic funds lead equity scheme inflows
Thematic funds topped the equity scheme inflows with the highest net inflows of ₹1.55 lakh crore in 2024.
Midcap and small-cap funds also witnessed robust inflows of ₹32,465 crore and ₹34,223 crore respectively, while large-cap funds received ₹19,415 crore.
This growth across segments indicates investor optimism, particularly in the small and mid-cap segments which provided robust returns in 2023 and 2024.
SIP impact
SIPs contribute significantly to mutual fund industry
SIPs have emerged as a key driver of the mutual fund industry, with aggregate SIP contributions hitting ₹2.5 lakh crore in 2024. The month of December witnessed record inflow, with monthly SIP contributions hitting a high of ₹26,459 crore.
Folio growth
Equity fund folios increase by 4.45cr in 2024
Investor participation has also been on the rise, as indicated by the increase in folio numbers.
By December 2024, the folio count in equity funds jumped by 4.45 crore to 15.75 crore, showing a strong and growing interest in equity mutual funds among Indian investors.
This trend is viewed as a sign of India's march toward financial inclusion and a change in household financial preferences toward equities and equity mutual funds.