Equity mutual fund investments soar in December: SIPs hit record Rs 26,459 crore amid market volatility
Equity mutual fund investments surged by 14 per cent to Rs 41,156 crore in December 2024, driven by record inflows into small and mid-cap schemes. Systematic Investment Plans (SIPs) hit a new high, attracting Rs 26,459 crore, showcasing investor optimism despite market volatility.
Equity mutual fund investments surged by a whopping 14 per cent to Rs 41,156 crore by December 2024, despite continued market volatility. According to the Association of Mutual Funds in India (AMFI), investor interest in small and mid-cap schemes remained strong, setting new records.
SIP investments continue to grow
Systematic Investment Plans (SIPs) attracted Rs 26,459 crore in December, up from Rs 25,320 crore in November. Assets under management (AUM) through SIPs amounted to Rs 13.63 lakh crore, nearly 20 per cent of the total AUM of the mutual fund industry.
Total mutual fund assets are falling slightly
As on December 31, 2024, mutual funds had a total AUM of Rs 66.93 lakh crore, up from Rs 68.08 lakh crore in November. AMFI attributed the decline to market volatility and Rs 1.27 lakh crore waived from loan schemes, usually seen at the end of a quarter.
Optimistic investors despite the uncertainty
AMFI acknowledged that there is global uncertainty, fueled by changes in the US. including administrative costs, but stressed that Indian investors remain confident in the investment market. The continued growth in SIPs reflects this optimism, with longer-term investments reflecting confidence in market potential.
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In December, 33 new fund issuers (NFOs) were launched, raising over Rs 13,643 crore compared to Rs 4,000 crore with 18 schemes, so in November the highest inflows to the sector were thematic funds that came in at Rs 15,331 crore, up from Rs 7,658 recorded in November, almost twice as much as USD 1 million.
Strong growth in the mid-cap and small-cap sectors
The mid-cap category saw an inflow of Rs 5,093 crore, while small-cap schemes saw an inflow of Rs 4,667 crore.
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