India’s SIP Market Records 233% Growth, Boosted By Robust Economic Performance

India’s Systematic Investment Plans (SIPs) have seen a massive 233% year-on-year growth in net inflows, highlighting the resilience of the Indian economy despite global uncertainties. A new report from ICRA Analytics revealed that total net inflows reached Rs 9.14 lakh crore from January to November 2024, up from Rs 2.74 lakh crore in 2023.

The surge is a clear reflection of investor confidence in the country’s economic outlook. The number of new SIP registrations also increased significantly, reaching 49.47 lakh by the end of November 2024, compared to 30.80 lakh in the same period last year. Additionally, SIP assets under management (AUM) grew to Rs 13.54 lakh crore in November 2024, up from Rs 9.31 lakh crore in November 2023.

Strong Growth in the Mutual Fund Industry

The Indian mutual fund industry saw an impressive 135% increase in net inflows, reaching Rs 60,295.30 crore in November 2024, compared to Rs 25,615.65 crore a year earlier. The industry’s AUM crossed a historic milestone of Rs 68.08 lakh crore in November 2024, up from Rs 49.05 lakh crore in November 2023.

Ashwini Kumar, Senior Vice President at ICRA Analytics, noted that the structural growth of the Indian economy has positioned the domestic mutual fund industry for multi-fold growth in the years ahead. He added that India remains a bright spot in the global economy.

Large-Cap Funds See Major Surge in Inflows

Large-cap equity funds were the biggest draw for investors, seeing a nearly 731% increase in inflows. In November 2024, they recorded Rs 2,547.92 crore in inflows, compared to Rs 306.70 crore in November 2023.

Kumar highlighted that mid- and small-cap funds also continued to attract investor interest, benefiting from the government’s push for economic growth and the country’s strong regulatory framework. These funds are expected to maintain investor appeal in the long term, particularly amid global uncertainty and geopolitical risks.

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