Mutual Fund AUM at all-time high of Rs 67.90 lakh crore in September: AMFI

The mutual fund industry AUM has hit an all-time high of Rs 67.90 lakh crore in September, led by net inflows across open-ended categories and mark-to-market (MTM) gains in the equity market. The industry’s AUM increased from Rs 66.70 lakh crore in August, reflecting growth of Rs 0.39 lakh crore or 0.58% over the previous month, according to a monthly note by the Association of Mutual Funds in India (AMFI).

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.

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The monthly note stated that, “Growth/equity-oriented schemes closed the month at a record Rs 31.10 lakh crore (46% of the industry AUM), led by strong inflows and MTM gains. The sectoral/thematic category witnessed the highest inflows, led by funds mobilised through new fund offers (NFOs).”

Within the income/debt-oriented schemes, funds with maturity of less than one year such as liquid, overnight, money market, logged outflows owing to regular quarter-end fund requirements of corporates and banks to meet advance tax obligations. The assets of long-duration funds increased, driven by strong inflows and MTM gains amid rate cut expectations. The corporate bond funds recorded net inflows of Rs 5,039 crore, up from Rs 667 crore in August.

The hybrid scheme assets hit a fresh high of Rs 8.75 lakh crore. Equity savings schemes have logged the highest-ever inflows of Rs 2,269 crore. In the passive funds category, 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 hit a record high of Rs 11.46 lakh crore (17% of industry AUM). 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, with a growth rate of 2.93%. Equity-oriented schemes saw the highest number of additions, with close to 44 lakh new accounts. The ‘others’ category, mainly consisting of passive schemes, logged the second-highest addition with 14 lakh new accounts.Also Read | 10 mutual fund schemes receive inflows over Rs 1,500 crore in September

The monthly SIP contributions reached an all-time high of Rs 24,509 crore in September. This surge, along with mark-to market gains, propelled SIP assets to grow 3.2%, reaching Rs 13.82 lakh crore. Over 26 lakh SIP accounts were added in September, taking their total count to more than 9.87 crore. SIP assets, as a percentage of industry assets, were around 20%, indicating their stable and significant contribution to the mutual fund industry.

“The mutual fund industry continues to demonstrate robust growth, achieving a new milestone with an asset base of Rs 67.09 lakh crore at the end of September 2024. The folio count has now surpassed 21 crore with over 5 crore unique PAN holders, underscoring the expanding investor base and the increasing penetration of mutual funds across diverse demographics,” said Venkat N Chalasani, Chief Executive – AMFI.

“Notably, the Systematic Investment Plan (SIP) contributions reached a record high of Rs 24,509 crore in September 2024, highlighting the growing trend towards disciplined and long-term investment strategies,” he added.

“Our commitment to transparency, excellence, and adapting to the evolving needs of our investors remains unwavering. As mutual funds continue to play a pivotal role in stabilising the equity markets in India, we are dedicated to delivering an exceptional investment experience and fostering long-term wealth creation for our investors,” he further added.