You are currently viewing Equity AUM of domestic MFs rise for 11th consecutive year in India net inflows surge
Representation image: This image is an artistic interpretation related to the article theme.

Equity AUM of domestic MFs rise for 11th consecutive year in India net inflows surge

Mutual Fund Growth Driven by Investor Confidence and Market Trends.

The growth in AUM was driven by the following factors: Higher equity scheme sales Uptrend in market indices Increased investor participation Improved investor sentiment Stronger investor confidence

The Rise of Domestic Mutual Funds

Domestic mutual funds have experienced a remarkable growth trajectory over the past decade, with their AUM rising for the 11th consecutive year. This achievement is a testament to the increasing popularity and confidence of investors in these funds. The growth in AUM can be attributed to several key factors, which are discussed in detail below.

Factors Driving Growth

  • Higher equity scheme sales: The rise in equity scheme sales has been a significant contributor to the growth in AUM. This is evident from the fact that equity schemes have seen a substantial increase in their market share over the past few years. Uptrend in market indices: The uptrend in market indices, particularly the Nifty, has also played a crucial role in driving the growth in AUM. The 9 per cent growth in the Nifty index has provided a boost to the overall market, leading to increased investor participation and confidence. Increased investor participation: The growth in AUM can also be attributed to increased investor participation. As more investors enter the market, they are likely to invest in mutual funds, leading to an increase in AUM.
  • ## The Rise of Mutual Funds in India

    • The Rise of Mutual Funds in India

    The mutual fund industry in India has experienced significant growth over the years, with a substantial increase in its total assets under management (AUM). In the year 2024, the industry’s total AUM reached Rs 66.9 lakh crore, a 32 per cent increase from the previous year.

    Key Statistics

  • Total AUM: Rs 9 lakh crore
  • Growth rate: 32 per cent
  • Top sector holding: Private banks (6 per cent)

    • The Growth Drivers

    Several factors have contributed to the growth of the mutual fund industry in India. Some of the key drivers include:

  • Increased investor confidence: The Indian economy has shown significant growth in recent years, leading to increased investor confidence and a desire for investment opportunities.

    the fund’s assets under management (aum) grew by 14.1 per cent in the same month, reaching Rs 1,03,155.9 crore.

    The Rise of Actively Managed Equity Mutual Funds

    A New Record for Actively Managed Equity Mutual Funds

    Actively managed equity mutual funds have witnessed a remarkable surge in inflows, with a staggering 14% monthly growth in December.

    • Leave a Reply