The mutual fund industry marked a monumental milestone in December 2023 as it surged past Rs 50,000 crore in net Asset Under Management (AUM), signifying a remarkable growth trajectory. Monthly data released today by the Association of Mutual Funds in India (AMFI) revealed that the industry's net AUM stood at Rs 50,77,900 crore, up from November's Rs 49,04,992 crore. The most striking achievement in this surge was the addition of over 30 lakh investors, taking number of Mutual Fund (MF) folios to an all-time high of 16,48,90,272 in December 2023.
Equity-oriented funds continue to see net inflows for the 34th consecutive month, with Rs 16,997 crore in December higher than that of the previous month.
However, the mutual fund industry as a whole encountered outflows of Rs 42,760 crore, primarily from debt funds, an outflow of Rs 75,559 crore.
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SIP Participation & Fund Inflow Details
The systematic investment plan (SIP), a key indicator of retail participation, recorded an all-time high monthly inflow of Rs 17,610 crores for the month.
Equity-oriented funds continue to see net inflows for the 34th consecutive month, with Rs 16,997 crore in December higher than that of the previous month. Within the equity class, sectoral funds witnessed the highest inflows of Rs 6,005 crore, followed by small-cap funds at Rs 3,857 crore.
Hybrid mutual funds also experienced a huge surge in investments, garnering an inflow of Rs 15,009 crore during the month. Amongst all categories, arbitrage funds received the highest inflow of Rs 10,645 crore. In the hybrid fund category, Equity savings and multi-asset allocation funds received with inflows of Rs 1,080 crore and Rs 2,420 crore, respectively. The month also saw inflows of Rs 88 crore in Gold ETFs, down from Rs 333 crore in November 2023.
The number of new SIPs registered in the month was 40,32,643. A total of 21 schemes were launched in December 2023, in the category of both open-ended and close-ended schemes, raising a total of Rs 9,872 crores.
Venkat Chalasani, Chief Executive of AMFI, attributed the momentum of mutual fund growth to reduced inflationary pressure and a robust economy, that reflected in the positive market trends.
