Net overall flows via systematic investment plans (SIPs) in India rose by a massive 233 per cent year-on-year this year, according to a new report, keeping the Indian economy resilient through particularly rough geo-political times.
The overall net inflows during the period of January to November stood at Rs 9.14 lakh crore as compared to Rs. 2.74 lakh crore in 2023 which amounts to a growth of 233 per cent, the report by ICRA Analytics has noted.
New SIPs registered grew to 49.47 lakh at the end of November from 30.80 lakh in November 2023.
The SIP asset under management (AUM) also stood at Rs 13.54 lakh crore in November, as against Rs. 9.31 lakh crore in 2023, said the report.
According to the report, the Indian mutual fund (MF) industry has witnessed over 135 per cent surge in net inflows and nearly 39 per cent growth in net AUM (Assets under Management) over the last one year, with the industry expected to see multi-fold growth in the coming years as India is one of the bright spots in the global economy.
With the structural growth story of the Indian economy remaining intact and India a bright spot in the global economy, the domestic mutual fund industry is expected to witness multi-fold growth in the coming years," said Ashwini Kumar, senior vice president and head market data, ICRA Analytics.
While the total inflows into the mutual fund industry grew 135.38 per cent at Rs 60,295.30 crore in November 2024, against Rs 25,615.65 crore in November 2023, something more interesting is that the net AUM, which was at Rs 49.05 lakh crore in November last year, crossed the historic milestone to touch Rs 68.08 lakh crore in November this year.
While all funds witnessed a healthy growth in India, inflows into large cap funds under equity category were the highest, witnessing a surge of nearly 731 per cent at Rs 2547.92 crore in November 2024 as against Rs 306.70 crore same period last year.
"Large and mid-cap funds are likely to be a big draw among investors in the coming days amid increased volatility in domestic markets following escalating geopolitical risks and global uncertainty," Kumar said.
Small-cap and mid-cap funds, which have witnessed a steady surge in AUM, are also likely to hold investor interest in the medium to long term, owing to the value created in the entities backed by a robust regulatory framework leading to better corporate governance practices and the government's firm intent to push for an intrinsic growth in the country's economy.
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