Sectoral Funds Lead 2024 Mutual Fund Boom

In 2024, the Indian mutual fund industry experienced significant growth. Assets Under Management (AUM) surpassed ₹68 lakh crore, marking a 34% increase compared to December 2023. This growth was driven by steady inflows into equity schemes, which made up 45% of the industry’s total assets.

Popular Fund Types

Retail investors showed strong interest in sectoral and thematic mutual funds. Their AUM rose 79%, reaching ₹4.61 lakh crore. Small-cap mutual funds also attracted significant investments, growing from ₹2.33 lakh crore in 2023 to ₹3.26 lakh crore in November 2024. Meanwhile, mid-cap mutual funds saw their AUM surge from ₹2.81 lakh crore to ₹3.89 lakh crore.

Rise in Accounts and SIPs

The total number of mutual fund accounts, or folios, reached 22.08 crore (220.8 million) by November 30, 2024. Of these, about 17.55 crore folios were under equity, hybrid, and solution-oriented schemes, showing strong retail investor participation.

Systematic Investment Plans (SIPs) continued to gain popularity. The SIP AUM reached a record ₹13.54 lakh crore in November 2024. The number of SIP accounts stood at 10.22 crore, the highest ever recorded. Monthly SIP inflows increased by 48%, from ₹17,073 crore in November 2023 to ₹25,320 crore in November 2024.

Conclusion

Overall, the mutual fund industry’s growth in 2024 highlights an increasing preference for equity investments. The rising popularity of sectoral and thematic funds among retail investors also stands out.