The total assets managed by the mutual fund industry have increased by almost 40 percent in a year ₹68.05 trillion by November 2024, up 39.59 percent from November 2023, according to the latest data from the Association for Mutual Funds in India (AMFI).
Interestingly, the increase is mainly attributed to investments by private investors, including in equity schemes.
Meanwhile, contributions through systematic investment plans (SIPs) increased. ₹17,073 crore by November 2023 to ₹25,320 crore by November 2024, reflecting a 48 percent increase over the past year.
Equities versus debt
The data further shows that the proportional share of equity-oriented schemes stood at 59.7 percent of industry assets in November 2024, up from 54.9 percent in November 2023. On the contrary, the proportional share of debt-oriented schemes fell from 18.5 percent per year. cents to 14.8 percent.
What is even more striking is that equity-oriented schemes derive 88 percent of their assets from individual investors (retail + HNIs). At the same time, institutional investors dominate liquid and money market funds (88 percent), debt-oriented funds (64 percent) and ETFs FOFs (88 percent).
“This year, 205 new fund offerings (NFOs) have been launched and are close to yielding ₹1 lakh crore, underscoring the enthusiasm for equities. While this shift indicates increasing investor confidence in the stock market, it also signals the need for greater awareness about disciplined investing over the long term, rather than relying solely on past performance,” said Rajani Tandale, Senior Vice President, Mutual Fund at 1 Finance. .
Private investors
Individual investors now own a relatively larger share of the sector’s assets: 60.8 percent in November 2024 compared to 59.2 percent in November 2023.
The value of individual mutual fund investors’ assets rose from ₹28.86 lakh crore by November 2023 to ₹41.40 lakh crore by November 2024, an increase of 43.47 percent.
The value of institutional assets increased from ₹19.89 lakh crore by November 2023 to ₹26.64 lakh crore by November 2024, an increase of 33.97 percent.
The data further shows that as much as 87 percent of individual investors’ assets are held in equity-oriented schemes, while 53 percent of institutional assets are held in liquid/money market and debt-oriented schemes.
Meanwhile, institutional investors are responsible for 39.2 percent of assets, of which companies account for 94 percent. The rest are Indian and foreign institutions and banks.
