Mutual Fund Folios Reach All-Time High In December 2024

Mutual fund folios reached a record high of 22,50,03,545 in December 2024, according to the latest data released by the Association of Mutual Funds in India (AMFI) on Thursday. This marks a significant milestone in the growth of India’s mutual fund industry.

Retail mutual fund folios, which encompass equity, hybrid, and solution-oriented schemes, also saw a substantial rise. In December 2024, the number of retail folios hit 17,89,93,911, surpassing the 17,54,84,468 recorded in November 2024. This reflects strong retail investor participation in mutual funds.

Retail assets under management (AUM) stood at ₹39,91,313 crores in December 2024, compared to ₹39,70,220 crores the previous month, indicating healthy growth in retail investments.

New SIPs And Record Contributions

December 2024 also saw impressive growth in systematic investment plans (SIPs), with 54,27,201 new SIPs registered. The SIP AUM reached ₹13,63,137.39 crores, and SIP contributions increased to ₹26,459.49 crores, up from ₹25,319.66 crores in November 2024.

The number of SIP accounts reached its highest-ever level at 10,32,02,796 in December 2024, a growth from 10,22,66,590 in November 2024. This surge underscores the growing confidence of investors in the SIP route for long-term wealth creation.

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Venkat Chalasani, Chief Executive of AMFI, attributed the strong SIP inflows to the growing maturity of investors. “Despite volatile market conditions, equity-oriented schemes continued to see strong inflows, reflecting investors’ confidence and commitment to stay invested for the long term,” he said. He added that the record SIP contribution of ₹26,459.49 crores in December highlights investors’ unwavering focus on their financial goals.

Equity Inflows Soar In December

Equity mutual funds also saw a significant uptick in inflows, with December 2024 recording a 14.5% increase. The inflow into equity mutual funds reached ₹41,155 crore, compared to ₹35,943.4 crore in November 2024, marking a 14.49% rise. December 2024 was the 46th consecutive month of positive equity inflows, continuing a steady trend that started in March 2021.

Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers, highlighted the resilience of retail investors. “Despite market volatility, SIP numbers have remained strong, reflecting retail investor confidence in long-term investments in India,” she said. Borthakur also noted the 50% growth in SIPs over the past year, demonstrating investor conviction. Additionally, sectoral and thematic funds, especially in mid- and small-cap segments, have attracted robust inflows.

This positive growth in mutual fund folios, SIP contributions, and equity inflows indicates a continued rise in investor confidence, even amidst market uncertainties, showcasing the increasing maturity of India’s investment landscape.