SIP Inflows and AUM Growth

In a significant development for the Indian mutual fund industry, Systematic Investment Plan (SIP) inflows surged by 39% year-on-year in November, reaching Rs 25,320 crore, as per a report by Motilal Oswal. Simultaneously, the assets under management (AUM) crossed the Rs 68 lakh crore mark, reflecting strong retail investor participation. The report highlighted that the mutual fund AUM and SIP flows have risen by 48% and 39% respectively over the past year, showcasing substantial sector expansion.

Equity Mutual Funds Dominate

Analysis indicates that SIP flows have surpassed non-SIP monthly gross flows, registering a 48% growth compared to 12% in non-SIP flows. Despite a decrease in non-SIP flows in November, SIP contributions accounted for about 2% of total mutual fund inflows. Since March 2021, the overall mutual fund AUM has grown at a compound annual growth rate (CAGR) of 23%, with equity mutual funds constituting 45% of total AUM. Equity AUM rose by 50% annually, increasing by Rs 10 lakh crore to Rs 30 lakh crore, with an average monthly growth rate of 3%.

Investor Confidence in Equity Funds

The report also noted that while equity mutual fund redemptions have reduced over the year, they still represent approximately 42% of monthly flows. November 2024 saw increased folio numbers across all equity categories, suggesting sustained investor confidence in equity funds. Mid-cap funds experienced the strongest folio growth, adding 6,06,430 new folios in November 2024, indicating robust interest in this segment. These findings underscore the Indian mutual fund industry's strength, showing steady growth in AUM and SIP contributions, alongside broader participation in equity categories.