The mutual fund assets surged by ₹14 lakh crore or 35 per cent year-on-year to a record ₹53.40 lakh crore in FY24, propelled by the growing participation of retail investors and buoyant equity markets.
This percentage gain was the highest since fiscal 2021 when the industry had grown by 41 per cent, the Association of Mutual Funds in India (Amfi) said in its annual report.
The robust gain in the industry's assets under management (AUM) was also replicated in the growth of investors in mutual funds, with the number of folios closing at a record high of 17.78 crore, adding an investor base of around 4.46 crore.
Women comprised about 23 per cent of investors, while men accounted for around 77 per cent.
The adoption of systematic investment plans (SIPs) continued to rise, with monthly net inflows touching about ₹19,300 crore in March 2024. For fiscal 2024, net inflows through SIPs stood at ₹2 lakh crore, showing increasing investor confidence and a disciplined investing approach.
"Fiscal year 2024 has emerged as a landmark period for the domestic mutual funds industry, witnessing a remarkable surge in assets under management (AUM) by nearly ₹14 lakh crore, reaching a record high of ₹53.40 lakh crore as of March 2024, compared to ₹39.42 lakh crore in March 2023," the report said.
Individual investors played a key role in driving the growth trajectory, especially in equity, hybrid, and solution-oriented schemes, which collectively accounted for nearly 58 per cent of the industry assets and 80 per cent of the folio count by March 2024. This shows the increasing participation of households in the capital markets through mutual funds.
Equity-oriented categories witnessed a growth of 55 per cent during fiscal 2024, reaching ₹23.50 lakh crore in assets, driven by robust inflows and mark-to-market gains.
On the other hand, debt funds saw moderate growth of around 7 per cent during the fiscal to ₹12.62 lakh crore in assets. This came after experiencing contractions in the previous two fiscal years.
Within the equity segment, the Flexi cap category emerged as the largest fund category, followed closely by large-cap funds, with multi-cap funds experiencing the highest growth rate of 85 per cent.
Hybrid funds crossed the ₹7 lakh crore mark with asset gains exceeding 50 per cent, driven by investors adopting an asset allocation approach and leveraging arbitrage opportunities in the market.
Passive funds continued to benefit from institutional investment flows, particularly into exchange-traded funds (ETFs). ETFs, as a category, have assets of ₹6.64 lakh crore as of March 2024.