Indian mutual fund industry's net AUM crosses Rs 65 lakh crore, SIPs at fresh high

The net assets under management (AUM) of the Indian mutual fund industry surged to cross Rs 65 lakh crore mark for the first time in August, data from the Association of Mutual Funds of India (AMFI) showed on Tuesday.

Equity funds saw Rs 38,239 crore inflows in August, a 3.03 per cent growth from Rs 37,113 crore witnessed in July.

Equity inflows have shown remarkable strength, with the last four months consistently exceeding Rs 34,000 crore.

Pankaj Shrestha, Head-Investment Services, Prabhudas Lilladher, said that thematic and sectoral funds witnessed the highest inflows, driven primarily by New Fund Offerings (NFOs).

Notably, this marks the 42nd consecutive month of positive equity inflows. Large-cap funds also attracted significant investments this month, alongside strong inflows across mid-cap and small-cap categories, reflecting robust investor confidence in the broader market”

The net AUM at the end of month stood at Rs 66.70 lakh crore. Inflows into open-ended equity funds have remained in the positive zone for the 42nd month in a row. Overall, open-ended mutual funds saw net inflows of Rs 1,08,240.95 crore.

The systematic investment plans (SIPs) reached fresh highs as monthly contributions via SIPs hit Rs 23,547 crore in August, against Rs 23,332 crore in the previous month.

According to the data, inflows into small-cap funds increased 52 per cent to Rs 3,209.33 crore and net investments into mid-cap funds increased 86 per cent to Rs 3,054.68 crore. Large-cap category saw net inflows of Rs 2,636.86 crore during August, a surge of 293 per cent.

In the fixed-income category, debt mutual funds saw net inflows of Rs 45,169.36 crore during August.

Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India, said that the quantum of net inflows witnessed in August 2024 was the second highest monthly net inflow ever received, second only to the net inflows in June 2024.

“Moreover, this was the 42nd consecutive month of net inflow in the equity-oriented funds highlighting the ever-increasing appeal of mutual funds among investors. The number of folios also increased by 3.16 per cent from 13.8 crore in July to 14.3 crore in August highlighting the emergence of mutual funds as a preferred investment option among investors,” he mentioned.
The launch of new funds continued in August as well. The month witnessed the launch of six new fund offerings which cumulatively garnered Rs 11,067 crore.

There is also no stopping the launch of passive strategies. In August, 10 passive funds were launched (5 each from index and other ETF segments). These funds combined garnered Rs 884 crore.