For the first time, the total assets under management (AUM) of the Indian mutual funds industry surpassed Rs 50 lakh crore, with flows through systematic investment plans (SIPs) reaching a new high in December.
According to the Association of Mutual Funds in India (AMFI), the industry's total AUM as of December 31, 2023 was Rs 50.78 lakh crore, up from Rs 49.05 lakh crore the previous month.
In addition, the industry's overall AUM increased by more than Rs 10 lakh crore in the last year—total AUM was pegged at Rs 39.9 lakh crore in December 2022—with assets increasing by nearly six times in the prior ten years.
More crucially, SIPs continued to establish new milestones, with Rs 17,610 crore streaming in through SIPs in December, up from Rs 17,073 crore in November. In addition, approximately 4 million additional SIP accounts were opened during the month. The month saw a net inflow of Rs 16,997.09 crore into equity schemes, with sectoral/thematic funds accounting for the lion's share at Rs 6,005.49 crore.
Other equity fund categories, such as Multi Cap, Mid Cap, Small Cap, and Flexi Cap, saw net inflows throughout the month. Meanwhile, net outflows occurred in the Large Cap, Focused Fund, and ELSS categories during the month.
Interestingly, Arbitrage Fund witnessed net inflows of more than Rs 10,000 crore—Rs 10,645.16 crore to be exact—during the month of December 2023, while hybrid funds as a category saw net inflows of Rs 15,009.30 crore.
Debt funds, on the other hand, experienced net withdrawals totaling Rs 75,559.93 crore in December – end-of-quarter months normally show outflows in debt funds. Liquid Funds experienced the greatest outflows, totaling Rs 39,675.27 crore.
Meanwhile, in the final month of the previous calendar year, the total number of unique investors increased to 42.1 million, a significant increase over the previous five years from 19.1 crore in December 2018.
