Indian mutual fund industry witnessed robust inflows into equity mutual funds in December 2024 reflecting the sense of optimism regarding the growth prospects of the Indian economy drawing increased participation from retail investors, Ashwini Kumar, Senior Vice President and Head Market Data, ICRA Analytics, said. Inflows into open ended growth/equity-oriented schemes increased by over 142 per cent at Rs 41,155.91 crore in December 2024, as against Rs 16,997.09 crore last year. On a month-on-month basis inflows into equity mutual funds increased by 14.5 per cent as compared with Rs 35,943.49 crore in November 2024.
Net Assets under Management (AUM) grew by 31.8 per cent on a year-on-year basis to touch Rs 66.93 lakh crore in December 2024, up from Rs 50.78 lakh crore last year. However, on a month-on-month basis, net AUM declined by 1.69 per cent from Rs 68.08 lakh crore in November 2024. This was primarily on account of outflows to the tune of Rs 1.27 lakh crore from open ended income/debt oriented schemes.
“Domestic mutual fund industry has showcased resilience backed by a sense of optimism regarding the growth prospects of the Indian economy, strong participation from retail investors, broadening investor base and growing interest and awareness among investors from smaller cities regarding mutual funds. The structural growth story of the Indian economy remains intact, and India is in a bright spot in the global economy and this will augur well for retail investors. We expect higher inflows to sustain moving forward,” Kumar said.
