September 2024: Mutual Fund AUM Sets New Record at Rs. 67.90 Lakh Crore
The Mutual Fund Industry achieved an all-time high AUM of Rs. 67.90 lakh crore in September 2024, driven by strong net inflows across open-ended categories and mark-to-market (MTM) gains in the equity markets. This marks an increase from Rs. 66.70 lakh crore in August, reflecting growth of Rs. 0.39 lakh crore, or 0.58%, compared to the previous month, as per the latest monthly report updated by the Association of Mutual Funds in India (AMFI).
Equity Market Gains Fuel AUM Growth
For AUM’s growth, the positive performance of the equity market was crucial. Both the Nifty 50 and BSE Sensex ended the month more than 2% higher, generating substantial mark-to-market (MTM) gains. Equity-oriented schemes saw strong inflows and ended the month at a record Rs 31.10 lakh crore, which accounts for 46% of the total industry AUM. Sectoral and thematic funds stood out, with new fund offers (NFOs) leading the charge in terms of inflows.
Debt Schemes Experience Mixed Performance
Debt-oriented schemes saw varied results, with outflow from funds with maturities of less than one year, such as liquid, overnight, and money market funds. This was primarily driven by corporations and banks fulfilling their quarter-end tax obligations. However, long-duration funds benefited from both inflows and MTM gains, as expectations for interest rate cuts remained strong. Notably, corporate bond funds recorded significant net inflows of Rs. 5,039 crore in September, up from 667 crore in August.
Folio and SIP Accounts Maintain Strong Growth
Investor participation continues to rise, with up to 60 lakh folio accounts added in the month of September, bringing the total to 21.05 crore. Equity-oriented schemes saw the highest number of additions; also, passive funds attracted significant new accounts.
Systematic Investment Plan (SIP) contributions reached a record Rs. 24509 crore, driving a 3.2% growth in SIP assets, which now stand at Rs. 13.82 lakh crore. More than 26 lakh new SIP accounts were opened, strengthening the importance of SIPs in long-term wealth creation, with SIP assets now representing 20% of the total industry AUM.
Passive and Hybrid Funds Reach Record Levels
Hybrid schemes also reached new heights, with assets touching Rs. 8.765 lakh crore. Equity savings schemes show the charge, recording their highest-ever inflow of Rs. 2,269 crore. The passive fund category surged to a record Rs. 11.46 lakh crore, making up 17% of the total industry AUm. Gold ETFs, benefiting from geopolitical tensions and low US bond yields, saw a growth of 6.5% and reached Rs. 39,823 crore in assets.
AMFI’s Strategic Vision for Continued Growth
The chief executive of AMFI, Venkat N Chalasani, praised the industry’s strong performance, saying, “The mutual fund industry has reached a remarkable Rs. 67.90 lakh crore in assets, with over 5 crore unique PAN holders. SIP contributions have hit an all-time high, indicating the growing preference for disciplined, long-term investment strategies.”
He also added, “Our commitment to transparency and flexibility to investor needs is stronger than ever. Mutual funds will remain a cornerstone in stabilizing India’s equity markets and enabling investors to build long-term wealth.”
The mutual fund industry’s remarkable growth highlights the increasing confidence of investors. With continued support, it is well-positioned to deliver strong returns and financial securities in the year ahead.
