Mutual Funds AUM Growth in 2024: The Indian mutual fund industry had an exceptional year in 2024, marked by strong asset growth, significant inflows, and a growing preference for Systematic Investment Plans (SIPs). With a booming market and increasing investor confidence, mutual funds remain one of the top choices for long-term wealth building.
In 2024, the assets under management (AUM) of the mutual fund industry saw a remarkable increase. By November, AUM reached Rs 68.08 lakh crore, representing a 35.5% growth from Rs 50.24 lakh crore in 2023. According to Businesstoday, Open-ended mutual funds attracted around 5.13 crore new folios throughout the year, bringing the total folio count to 22.02 crore by November, up from 16.89 crore in January. As per the monthly data released by the Association of Mutual Funds in India (AMFI), a total of 174 new open-ended schemes were added in 2024, increasing the overall number of schemes to 1,552 in November, compared to 1,378 schemes in January.
Trivesh D, Chief Operating Officer of Tradejini, shared, “Retail investors, especially those investing through SIPs, were key drivers of this growth. Positive market sentiment and strong returns boosted confidence, making mutual funds a popular choice.”
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Kaustubh Belapurkar, Director-Manager Research at Morningstar Investment Pvt Ltd, noted, “Mutual funds had a good 2024, with YTD returns strong across categories. However, we saw increased volatility and lower returns compared to 2023 when markets were exceptionally buoyant, especially in mid and small-cap spaces.”
Equity funds, particularly mid-cap, small-cap, and thematic funds outperformed other categories in 2024. These funds benefited from sectoral growth and retail investor enthusiasm, resulting in significant returns. Rahul Jain, President of Nuvama Wealth, highlighted, “Mid- and small-cap funds saw returns of 31% and 30%, respectively. These funds thrived due to the liquidity in the market and the surge in retail investor interest.”
Kaustubh Belapurkar explained, “Mid-cap and small-cap indices had a strong year, while healthcare and technology sector funds performed exceptionally well. These sectors capitalised on the economic recovery and innovation.” In 2024, equity mutual funds experienced the largest increase in folios, adding approximately 3.76 crore. The total folio count as of November 30 stood at 15.41 crore, up from 11.64 crore in January. A total of 54 new schemes were introduced throughout the year, bringing the total number of equity schemes to 481 by November.
In 2024, sectoral and thematic funds saw a significant increase in folios, adding approximately 1.28 crore new folios to reach a total of 2.89 crore by November, compared to 1.61 crore in January. Forty new sectoral and thematic schemes were introduced during the year, contributing to this growth.\
| Returns (%) | Alpha against N50 (%) | |||||
| Categories | 31-Dec-22 To 31-Dec-23 | YTD | 31-Dec-22 To 31-Dec-23 | YTD | ||
| Large Cap Fund | 23.93 | 16.88 | 2.63 | 5.36 | ||
| Large & Mid Cap | 29.97 | 25.64 | 8.67 | 14.12 | ||
| Flexi Cap Fund | 28.28 | 22.41 | 6.98 | 10.89 | ||
| Mid Cap Fund | 37.04 | 31.11 | 15.74 | 19.60 | ||
| Dividend Yield | 35.99 | 21.48 | 14.69 | 9.96 | ||
| Multi Cap Fund | 32.76 | 25.62 | 11.46 | 14.11 | ||
| Small cap Fund | 41.08 | 29.49 | 19.78 | 17.97 | ||
| Focused Fund | 26.12 | 21.33 | 4.82 | 9.82 | ||
| Value Fund | 34.37 | 22.40 | 13.07 | 10.88 | ||
| Contra | 34.02 | 25.78 | 12.72 | 14.26 | ||
(Source: Anand Rathi Wealth)
Systematic Investment Plans (SIPs) continued their upward trajectory, with contributions reaching Rs 25,320 crore per month as of November 2024, reflecting a significant 44% increase from ₹17,610 crore recorded in December 2023. This surge in SIP contributions indicates that retail investors, particularly those investing via SIPs, have been instrumental in driving the growth of the mutual fund industry.
| Months | SIP Inflows(In Cr) | Change (%) |
| Nov-23 | ₹ 17,073 | 0.86% |
| Dec-23 | ₹ 17,610 | 3.15% |
| Jan-24 | ₹ 18,838 | 6.97% |
| Feb-24 | ₹ 19,187 | 1.85% |
| Mar-24 | ₹ 19,271 | 0.44% |
| Apr-24 | ₹ 20,371 | 5.71% |
| May-24 | ₹ 20,904 | 2.62% |
| Jun-24 | ₹ 21,260 | 1.70% |
| Jul-24 | ₹ 23,332 | 9.75% |
| Aug-24 | ₹ 23,547 | 0.92% |
| Sep-24 | ₹ 24,509 | 4.08% |
| Oct-24 | ₹ 25,323 | 3.32% |
| Nov-24 | ₹ 25,320 | -0.01% |
(Source: Anand Rathi Wealth)
Thematic funds, such as those focused on technology, healthcare, and renewable energy, saw strong
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Thematic funds, particularly those focused on technology, healthcare, and renewable energy, experienced strong inflows in 2024. As per CNBCTV18, By November, thematic funds had attracted ₹7,657 crore, despite a slight dip from ₹12,278 crore in October.
Trivesh D, Chief Operating Officer of Tradejini, noted, “Funds focusing on sectors like technology and green energy offered impressive returns. The rise of ESG investing further fueled investor interest in these funds.”
Kaustubh Belapurkar, Director-Manager Research at Morningstar Investment Pvt Ltd, shared, “Sectoral and thematic funds saw inflows of ₹1.4 lakh crore till November 2024, driven by 40 NFOs that raised more than ₹67,000 crore. This indicates a clear preference for thematic funds, especially in healthcare and technology.”
Sectoral fund performance
| Fund Category | YTD 2024 Returns | 2023 Returns |
| Pharma Sector Fund | 35% | 27% |
| Infrastructure Fund | 32% | 35% |
| Technology Sector Fund | 28% | 41% |
While equity funds saw a surge, debt funds faced a decline in 2024. Debt fund inflows dropped by 92% in November 2024 compared to the previous month, with just ₹12,915 crore recorded.
Trivesh D, Chief Operating Officer of Tradejini, explained, “With equities offering higher returns and inflation under control, investors are leaning towards equities rather than low-yielding debt funds. This trend will likely continue in 2025.”
As we move into 2025, experts predict increased interest in large-cap funds, with investors prioritizing stability and consistent returns after the strong performances of mid- and small-cap stocks in 2024.
Rahul Jain, President of Nuvama Wealth, noted that large-cap funds are likely to gain favor in 2025 as investors seek safety and steady returns in a potentially volatile market.
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Feroze Azeez highlighted that flexi-cap funds, with their diversified approach, will continue to be an attractive option for those seeking a balanced investment strategy.
Retail investor engagement will remain a key driver of success, with experts emphasizing that SIPs, equity funds, and sectoral funds will continue to play a significant role in mutual fund growth throughout 2025.
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