Net inflows in SIPs up 233 pc in India this year, MF industry sees 135 pc growth

Mumbai: There has been a massive 233 per cent growth (year-on-year) in overall net inflows in systematic investment plans (SIPs) in India this year, according to a new report, as the Indian economy remains resilient amid rough geo-political conditions.

Overall net inflows stood at Rs 9.14 lakh crore from January to November this year, as against Rs. 2.74 lakh crore in 2023 which tantamount to a growth of 233 per cent, according to the report by ICRA Analytics.

Number of new SIPs registered increased to 49.47 lakh at the end of November, as against 30.80 lakh in November 2023.

Moreover, SIP asset under management (AUM) stood at Rs 13.54 lakh crore in November, as against Rs. 9.31 lakh crore in 2023, said the report.

Indian mutual fund (MF) industry 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, the report said, adding that the industry is likely to witness a multi-fold growth in the coming years with India being in a bright spot 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.

Meanwhile, total inflows into the mutual fund industry grew by 135.38 per cent at Rs 60,295.30 crore in November 2024, as against Rs 25,615.65 crore in November 2023.

Interestingly, 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 robust growth in India, inflows into large cap funds under equity category were the highest, registering 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, due to the value created in the entities backed by 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.

—IANS