Mutual Fund Industry Surges with Record Rs 17 Lakh Crore Growth in 2024
The Indian mutual fund industry witnessed a stellar performance in 2024, adding an unprecedented Rs 17 lakh crore to its assets under management (AUM), reaching a record-high of Rs 68 lakh crore by November-end. This 33% growth, compared to Rs 50.78 lakh crore at the end of 2023, was fueled by robust equity markets, economic expansion, and increasing retail participation through Systematic Investment Plans (SIPs). SIP contributions alone reached Rs 2.4 lakh crore, while equity-oriented schemes attracted net inflows of Rs 3.53 lakh crore, signifying a structural shift towards disciplined, long-term investing.
The 45-player industry recorded a total net inflow of Rs 9.14 lakh crore in 2024, significantly surpassing Rs 2.74 lakh crore in 2023. Categories like sectoral and thematic funds emerged as major attractions, with their AUM growing by 79% to Rs 4.61 lakh crore, supported by retail interest and Rs 67,000 crore raised through 40 new fund offerings. Debt schemes also saw strong inflows, particularly in liquid and low-duration funds, while gold investments gained traction due to economic uncertainties and geopolitical tensions, contributing Rs 9,500 crore.
Experts foresee the growth momentum extending into 2025, driven by financialisation trends, rising investor awareness, and regulatory reforms by Sebi, such as the MF Lite framework and simplified asset classes. Kaustubh Belapurkar of Morningstar India noted the industry’s resilience, with equity SIPs now a default investment choice for many Indians. Meanwhile, Akhil Chaturvedi of Motilal Oswal AMC emphasized the decade-long equity market growth as a key factor behind sustained investor confidence.
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