Equity mutual funds in India witnessed a decrease in inflows in September, according to data released by the Association of Mutual Funds in India (AMFI). The inflows dropped to Rs 30,421 crore, marking a 9% decline compared to the previous month.
Key Highlights:
- Decline in Equity Inflows: Equity schemes experienced a slight decline in inflows. Inflows into equity schemes fell to Rs 34,419 crore in September from Rs 38,239 crore in August.
- Systematic Investment Plans (SIPs) at All-Time High: Despite the overall dip in equity inflows, SIP contributions continued their strong momentum, reaching a new high of Rs 24,508.73 crore in September. The number of SIP accounts crossed 9.87 crore.
- Mixed Trends in Equity Fund Categories: Mid-cap (+2.48% MoM) and multi-cap funds (+41.77% MoM) saw increased inflows, indicating investor confidence in these segments. Value/contra funds also saw a modest 13.68% increase during the month. Large-cap funds, on the other hand, experienced a notable decline, with inflows dropping by 32.90% from August to September.
- Debt Schemes Witness Outflows: Debt schemes experienced an outflow to the tune of Rs 1,13,833.95 crore in September, compared with an inflow of Rs 45,169.36 crore in August 2024.
- Overall Mutual Fund Industry Robust: Despite the mixed trends in equity schemes, the overall mutual fund industry remains robust. The number of new SIPs registered reached 66,38,857 in September. The SIP AUM also hit a new high of Rs 13.81 lakh crore.
- Mutual Fund Folios Reach Record High: Mutual fund folios hit a record-breaking high of 210,515,684 in September 2024. Retail mutual fund folios—which comprise equity, hybrid, and solution-oriented schemes—also hit a record high of 168,161,366 in September.
- Industry AUM: The Mutual Fund industry AUM (Assets Under Management) stood at Rs 67.09 lakh crore for September month.
- Equity AUM: Equity AUM for the month remained at Rs 31 lakh crore versus Rs 30.1 lakh crore month-on-month.
- Gold ETFs: Gold ETFs witnessed a 6.5% monthly growth in assets to Rs 39,823 crore, driven by their safe-haven appeal amid rising geopolitical tensions and low yields on US bonds.
- Passive Funds: Passive funds hit a record high of Rs 11.46 lakh crore (~17% of industry AUM).
The equity market's positive performance, with the Nifty 50 and the BSE Sensex each closing the month over 2% higher, generated mark-to-market gains that contributed to the growth in mutual fund assets. Nearly 60 lakh folio accounts were added in September, taking the total folio count to ~21.05 crore, up from 20.45 crore in August—a growth rate of 2.93%. Equity-oriented schemes saw the highest number of additions, with close to 44 lakh new accounts.
