Mutual fund AUM reaches new high of Rs. 50 trillion
The Indian mutual fund industry achieved a major milestone in December, as assets under management (AUM) exceeded Rs. 50 trillion, fueled by steady inflows and a robust equity market. According to the Association of Mutual Funds of India (AMFI), open-ended schemes' AUM rose to Rs. 50.80 trillion in December, up from Rs. 48.78 trillion in November 2023.
Equity mutual funds and SIPs witness increased inflows
In December, net inflows into open-ended equity mutual funds increased by 9% to Rs. 16,997 crore, compared to Rs. 15,536 crore in November. Systematic investment plans (SIPs) also saw a rise in inflows, reaching Rs. 17,610 crore in December, up from Rs. 17,073 crore the previous month. Manish Mehta, Head of Sales, Marketing & Digital Business at Kotak Mutual Fund, told Moneycontrol that investors "continued to choose the SIP to take market exposure to iron out volatility."
Fund flows differ across small-cap, mid-cap, and large-cap funds
Throughout the year, small-cap funds attracted net inflows of Rs. 41,035 crore, while mid-cap funds received net investments of Rs. 22,913 crore. However, large-cap funds saw net selling of Rs. 2,968 crore. In December alone, small-cap funds drew net investments of Rs. 3,858 crore. The rise in assets of the mutual fund industry follows strong growth of the equity markets. In December, the Sensex rose 7.53% and Nifty gained 7.93% during the month.
Rise in outflows from debt funds
On the fixed-income side, debt funds saw net outflows of Rs. 75,560 crore last month, compared to net outflows of Rs. 4,707 crore in November. From debt-oriented schemes, liquid funds had the biggest net outflow of Rs. 39,675 crore. Next came low-duration funds at Rs. 9,432 crore and money market funds at Rs. 8,384 crore. Ultra-short duration and floater funds saw net outflows of Rs. 6,000 crore each, followed by overnight funds at Rs. 4,865 crore.
Throughout 2023, equity funds saw Rs. 1.61 trillion net flows
Throughout the calendar year, equity funds received net flows totaling Rs. 1.61 trillion. Among these, 39% or Rs. 63,949 crore flowed into mid-cap and small-cap mutual funds. Sectoral or thematic funds followed closely, attracting Rs. 30,841 crore. Large-cap and focused funds were the only sectors experiencing negative inflows, both at around 1.7%.
