In December 2024, India's mutual fund industry marked a historic milestone as the number of mutual fund folios hit an all-time high of Rs. 22.5 crore (approximately US$ 2.6 million), according to data from the Association of Mutual Funds in India (AMFI). This surge reflects a growing confidence among retail investors in mutual fund schemes as a reliable long-term investment avenue.

Of this, retail mutual fund folios, which include investments in equity, hybrid, and solution-oriented schemes, reached Rs. 17.89 crore (around US$ 2.1 million), up from Rs. 17.54 crore (about US$ 2.0 million) in November 2024. The steady increase in retail folios highlights the ongoing trend of financial inclusion and rising participation in the mutual fund sector, driven by both financial awareness and the convenience of digital platforms for investing.

At the same time, the Retail Assets Under Management (AUM) saw a slight increase, rising from Rs. 3,970,000 crore (US$ 462.23 billion) in November 2024 to Rs. 3,991,000 crore (US$ 464.88 billion) by the end of December 2024. This increase in AUM signifies continued trust in mutual funds, even amidst market fluctuations, reflecting the long-term growth potential that many investors see in the asset class.

One of the standout highlights of the mutual fund industry’s growth in 2024 was the surge in Systematic Investment Plans (SIPs), which are increasingly becoming the investment method of choice for many retail investors. In December 2024, there were 54.27 lakh new SIP registrations, a strong indication of investors' commitment to systematic, long-term investing. The SIP Assets Under Management (AUM) reached an impressive Rs. 13,63,000 crore (US$ 158.77 billion), marking a robust growth trajectory. Monthly SIP contributions set a new record at Rs. 26,459 crore (US$ 3.08 billion), highlighting the rising popularity of SIP as a disciplined investment strategy.

Moreover, equity mutual funds experienced a 14.5% jump in inflows, totaling Rs. 41,155 crore (US$ 4.79 billion) in December 2024, compared to Rs. 35,943 crore (US$ 4.19 billion) in November 2024. This marks the 46th consecutive month of positive equity inflows since March 2021, underscoring retail investors' resilience and optimism in the equity market, despite periodic market volatility. The shift towards equity funds, particularly in sectoral and thematic funds, points to a strong preference for growth-oriented investments in mid-cap and small-cap segments, where higher returns are sought.

The growth in SIP accounts, now at a record 10.32 crore, is another significant trend, further underscoring the investors’ commitment to consistent, long-term investment strategies. This trend highlights the effectiveness of SIP as a tool for wealth creation over time, enabling investors to capitalize on rupee cost averaging and mitigate the impact of short-term market fluctuations.

As SIP inflows and equity mutual fund investments continue to rise, India’s mutual fund industry demonstrates its resilience and growth potential. Investors, particularly those new to mutual funds, are increasingly embracing the discipline of regular contributions through SIPs, positioning themselves for future wealth generation. With the continued adoption of mutual funds as a preferred investment vehicle and the ongoing financial literacy initiatives, the sector is poised for sustained growth in the coming years, contributing to India's overall financial ecosystem and supporting the nation’s economic development.

In conclusion, December 2024’s mutual fund data reflects not only a record-breaking performance but also a deepening faith in systematic, long-term investing. The growth in SIP inflows, coupled with continued interest in equity mutual funds, reinforces the idea that Indian investors are becoming more focused on building wealth through disciplined and sustained investment strategies, further strengthening the mutual fund industry’s foothold in India’s financial landscape.

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The Upcoming IPOs in this week and coming weeks are  Kabra Jewels and Laxmi Dental.

The Current active IPO are Sat Kartar Shopping and Barflex Polyfilms.