The Indian mutual fund industry continued with its growth trajectory with net inflows growing by 93 per cent at Rs 25,616 crore in the month of November 2023, as against Rs 13,264 crore in November 2022. While debt mutual funds witnessed net outflows, equity mutual funds (open ended) as a category witnessed a robust 588 per cent growth in net inflows on a year-on-year basis.
The net Assets under Management (AUM) of the Indian mutual fund industry grew by 21 per cent to touch Rs 49.05 lakh crore as on November 30, 2023, up from Rs 40.38 lakh crore as on November 30, 2022. Average Assets under Management (AAUM) of the industry stood at Rs 48.75 lakh crore for the month of November 2023, as against Rs 40.49 lakh crore in October 2022. On a sequential basis, net AUM increased by nearly 5 per cent from Rs 46.72 lakh crore in October this year.
Net inflows into equity-oriented schemes grew nearly by 588 per cent at Rs 15,536 crore in November, up from Rs 2258 crore in the same period last year. While all equity fund categories recorded good net inflows, mid and small caps and thematic funds clearly were outperformers, ICRA Analytics, the analytical wing and wholly owned subsidiary of ICRA Ltd, said.
Among the growth/equity-oriented schemes, the small cap funds witnessed inflows to the tune of Rs 3699 crore, mid cap Rs 2666 crore; sectoral/thematic funds saw net inflows of Rs 1965 crore while multi-cap funds saw inflows to the tune of Rs 1713 crore. Gold ETFs (exchange traded funds) registered net inflows of Rs 333 crore in November this year, as against net outflows of Rs 195 crore in the same period last year.
Debt mutual funds (open ended) witnessed net outflows of Rs 4707 crore in November this year, as against net inflows of Rs 3669 crore in the same period last year, with 11 out of 16 fund categories witnessing outflows during the month.
Commenting on the latest AMFI data, Mr Ashwini Kumar, Head Market Data, ICRA Analytics said, "The Indian equity markets have been on a steady rise over the past week on the back of positive sentiments on the expectations of political stability in the upcoming General Elections of 2024 and a strong domestic economic outlook. The fall in global crude oil prices and the decline in US treasury yields further aided the gains. The Assets under Management (AUM) of the Indian mutual fund industry grew by 21 per cent YoY to touch Rs 49.05 lakh crore in November 2023. The equity-oriented schemes are expected to register a good growth in the second half of this fiscal supported by India's strong macroeconomic fundamentals. Bond yields decreased marginally following the decline in US treasury yields. The rate-pause stance adopted by the Reserve Bank of India at the recently concluded Monetary Policy Committee meeting may lead to some value buying while the yield may trade on the sidelines."