Rs 50 Trillion Party! Mutual Funds Boom as Investors Stay Happy

The Indian mutual fund industry saw its money pot grow to over Rs 50 trillion in December, thanks to more people investing and the rise in India’s stock market. This info comes from the Association of Mutual Funds of India (AMFI), which keeps tabs on mutual funds.

Here’s the scoop: the total money managed by these funds hit Rs 50.80 trillion in December, up from Rs 48.78 trillion in November 2023. This growth happened mainly because the stock market did really well. In December, BSE Sensex went up by 7.53 percent, and NSE Nifty by 7.93 percent.

People are keen on investing too! Money put into systematic investment plans (SIPs) increased to Rs 17,610 crore in December, showing that regular investors are feeling pretty confident.

The head honcho at AMFI, Venkat Chalasani, mentioned that while it took a long time to reach the first Rs 10 trillion, hitting the last Rs 10 trillion milestone only took a little over a year. Everyone involved—from the funds themselves to the regulators—worked hard to get more people interested in investing.

But here’s the kicker: in December, more money flowed into open-ended equity mutual funds, reaching Rs 16,997 crore, which is 9 percent more than November. However, midcap funds saw less money coming in compared to the previous months, probably because some investors thought it was a good time to cash in on their gains.

Throughout the year, smallcap funds got Rs 41,035 crore, midcap funds got Rs 22,913 crore, but largecap funds saw Rs 2,968 crore going out.

On the other side of the investment world, debt funds saw more money going out—around Rs 75,560 crore in December. Liquid funds took the biggest hit, losing Rs 39,675 crore, followed by low-duration and money market funds.

Gopal Kavalireddi, Vice President of Research at FYERS, explained that the drop in overall investment was due to things like tax payments, people cashing out from debt funds, and higher stock prices.

Hybrid funds, which mix things up between stocks and bonds, were popular too. They got around Rs 15.009 crore in December, with a chunk of that coming from arbitrage funds. Some investors are switching their money between stocks and bonds as the Indian market hits record highs.

Throughout the year, about Rs 1.61 trillion flew into equity funds, with a good chunk—39 percent or Rs 63,949 crore—landing in mid and small-cap mutual funds. Sectoral or thematic funds also did well, getting Rs. 30,841 crore for the year. But largecap and focused funds saw a small drop in investment, around 1.7 percent each.

The Author

Vaid IQ

Don't forgot to sign in for latest update. You may also install our app through your browser. Also follow us on Youtube, Instagram, and Facebook for video updates and learnings. You can also book a consultation through our website. Thank you for reading.

Related Posts

Featured Image

12 Feb Latest Updates

Investing in Indian Mutual Funds for NRIs in US and Canada: What You Need to Know

As an NRI from the US or Canada, you’ve likely built a strong financial base. But have you considered diversifying your portfolio beyond your resident country? Look no further than India, your homeland, where exciting opportunities await in the form of Indian mutual funds. Here’s why they deserve a spot in your investment strategy: 1. […]
Featured Image

7 Jan Latest Updates

Don’t Get Burned: Why Finfluencers Can Torch Your Indian Rupees? Advisor VS Influencer

The internet beckons with promises of financial freedom, often whispered by suave figures online – the Finfluencers. These social media wizards peddle investment tips, savings hacks, and quick paths to wealth, leaving you tempted to dive headfirst. But hold your horses, folks, because blindly following Finfluencers could burn a serious hole in your pocket. Who […]
Featured Image

6 Jan Latest Updates

SEBI Updates Short Selling Framework: No Naked Sales or Day Trading for Institutions

No more selling what you don’t own: Day trading not for big players: More transparency: Keeping stocks fair: What does this mean? This aims to make the stock market fairer and more predictable for everyone. It stops manipulation and protects companies from unfair attacks. Remember: Bonus: I hope this makes things clearer!