Mutual Funds give a ray of hope: Amidst the tense sentiment in the Stock Market world, we bring you good news. There has been a record increase in the Asset Under Management (AUM). This is followed by a surge in number of investors. The number of folios in the FY24 reached 17.8 crore, which is a record. The number equates to a customer base of around 4.46 crores.
With ₹53.40 lakh crore, the mutual fund industry’s assets under management (AUM) increased by 35% in FY24. According to the Association of Mutual Funds in India (AMFI), this is a significant rise from the ₹39.42 lakh crore recorded in March 2023.
According to AMFI, this spike is the most significant since the fiscal year 2021.
After flexi-cap and large-cap funds, multi-cap funds had the fastest growth rate at 85%, while flexi-cap funds were the biggest overall.
With a record high of 17.78 crore folios, or over 4.46 crore investors, the number of investors has risen in tandem with the increase in AUM.
Men made up roughly 77% of investors in February 2024, while women made up around 23%.
By March 2024, individual investors had contributed 80% of the industry’s assets and 58% of its folio count, mostly through equity, hybrid, and solution-oriented schemes, driving the growth trajectory.
This shows that more and more households are participating in the financial markets through mutual funds, according to AMFI.
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Due to inflows and mark-to-market gains, the equity-oriented categories’ assets increased by 55% in FY24, reaching ₹23.50 lakh crore.
Hybrid funds also made great strides, with asset gains reaching 50% and breaking the ₹7-lakh crore barrier.
According to AMFI, investors who have taken advantage of market arbitrage possibilities and implemented an asset allocation strategy are responsible for this development.
Institutional investment flows continued to be beneficial to passive funds, especially exchange-traded funds (ETFs), which had assets of 6.64 lakh crore rupees as of March 2024.
Following declines in the prior two fiscal years, debt funds had a modest 7% increase in assets during the fiscal year, reaching ₹12.62 lakh crore.
In March 2024, the monthly net inflows of systematic investment plans (SIPs) reached over ₹19,300 crore, showing that their adoption was going up.
Nearly ₹2 lakh crore was the net intake for the fiscal year 2024 through SIPs.
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