The assets under management (AUM) of the mutual fund industry have crossed the milestone of Rs 50 lakh crore (trillion) in December. Data disclosed by AMFI on Monday shows AUM for the industry at Rs 50,77,900.36 crore as of December 31, up 4 per cent over November 2023 and 27 per cent over December 2022.
Equity funds saw a net inflow of Rs 16,977.09 crore in December, while debt-oriented schemes saw an aggregate outflow of Rs 75,559.93 crore. Despite the volatility risks, small cap funds continued to see an inflow of Rs 3,857.50 crore during December, while sectoral and thematic funds were a hit for the month with an inflow of Rs 6,005.49 crore. The debt side’s substantial outflow was due to liquid funds recording outflow of Rs 39,675.27 crore.
The monthly gross SIP (systematic investment plan) inflows were Rs 17,610 crore in December, with cumulative inflows through SIP crossing Rs 1,41,000 crore. The SIP AUM as on December 31 touched Rs 10 lakh crore, almost 20 per cent of the industry AUM.
“While the mutual fund industry took 50 years to build the first Rs 10 lakh crore of AUM, the last Rs 10 lakh crore from Rs 40 lakh crore to Rs 50 lakh crore was amassed in just over a year,” said Venkat Chalasani, chief executive of AMFI.
“Mid and small cap funds continued to attract significant net inflows aggregating to Rs 5,250 crore, a staggering growth of 25 per cent on a year-on-year basis,” said Viraj Gandhi, CEO Samco Mutual Fund.
“With the expectations of high economic growth and political continuity, investors appear to be becoming increasingly confident about the prospects of the Indian equity market,” said G. Pradeepkumar, CEO, Union Asset Management Company Ltd.
“Entire fixed income category continued to be under pressure. Quarter end outflows coupled with tight liquidity had an impact on the liquid and ultra-segments, while even the longer end lacked much traction despite yields being attractive,” said Anand Vardarajan, business head – institutional clients, banking, alternate investments and product strategy, Tata Asset Management.
