Mutual Fund AUM In India Breach Rs 50 Trillion Mark, Courtesy Of Small-Cap Sparkle

Investments in equity mutual funds in India surged in December, mainly in small-cap funds, pushing the sector’s assets under management (AUM) above the Rs 50 trillion mark for the first time, according to the Association of Mutual Funds in India (AMFI).

Additionally, SIPs reached a new peak with contributions totaling Rs 176.10 billion in December, alongside a record number of SIP accounts at 76.37 million. This trend underscores the growing investor confidence and participation in India’s mutual fund sector.

This growth marks a significant milestone, considering the industry took nearly half a century to reach the first 10 trillion rupees of AUM, with the latest 10 trillion amassed in just over a year. This rapid accumulation is attributed to steady retail investor engagement through systematic investment plans (SIP), Reuters reported citing AMFI Chief Executive Venkat Chalasani.

Small-cap Funds In Focus
Data revealed that net inflows into equity mutual funds increased to Rs 169.97 billion in December from 155.36 billion in November. Small-cap funds were the most popular, drawing Rs 38.57 billion rupees and leading investment for the 15th consecutive month. In contrast, mid-cap funds experienced a significant decline in inflows, while large-cap funds saw net outflows. December marked the 34th consecutive month of net inflows into mutual funds, Reuters reported.

Equity-oriented Schemes Popular Among Investors
Equity-oriented schemes saw inflows of Rs 1.62 trillion in 2023, contributing to a 20 per cent rise in major indices like the Sensex and Nifty and significantly boosting small- and mid-cap sectors.
The small- and mid-cap indices rose approximately 56 per cent and 47 per cent, respectively, in 2023, bolstered by equity mutual fund inflows totaling over Rs 630 billion. These robust domestic inflows, coupled with record purchases by foreign portfolio investors, propelled India’s key benchmarks, the Nifty 50 and the Sensex, to historic highs in December.

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MF AUM Breach Rs 50 Tr. Mark