Mutual Fund Growth: The popularity of mutual funds among investors is increasing rapidly. The Aum of the increasing mutual fund industry is a hallmark of this day. According to the ‘Whore the Money Flow’ report of Motilal Oswal Asset Management Company (Moomc), India’s asset management industry has recorded a strong growth of more than 6 times in the last 10 years. In December 2014, where its assets Under Management (AUM) were Rs 10.51 lakh crore, it has increased to Rs 66.93 lakh crore in December 2024. Passive Funds have played an important role in this growth, which has been increased to Rs 10.85 lakh crore and has a 16% share in the total market. At the same time, Aum of Active Funds has reached 56.08 lakh crore rupees, which shows the strong hold of this industry.
Equity still with investors’ first choice with 60.19% market share
According to Motilal Oswal’s report, the largest share in the total assets under management (AUM) is 60.19% of equity funds. This is followed by 26.77% in date funds, 8.58% in hybrid funds, and 4.45% in other investment options. This figure suggests that the first choice of investors is still equity.
Md and CEO Prateek Aggarwal of Motilal Oswal AMC said, “India’s mutual fund industry has developed rapidly. Its assets under management (AUM) have reached about 67 lakh crore rupees. This increase is the result of economic progress and increasing financial literacy. This development shows that the mutual fund industry is capable of meeting the individual needs of investors. Also, it is also making financial ecosystem strong. Innovation, technology and customized investment solutions to maintain this increase in the coming time (tailored
Investment Solutions) will prove to be important. ”
Special things about ‘Whore the Money Flow’ report
Mutual fund industry recorded a net flow of 198 thousand crores in the December quarter. Equity funds contributed the most to this, especially in the active segment. During the December quarter, 84 new schemes were launched, from which about 24.8 thousand crore rupees were raised.
Active Flexi Cap and Mid Cap Funds Shine: Broad-based funds performed brilliantly in the equity segment and won more than 69% of the net inflow of this category. Thematic funds saw a decline in net inflow, while the factor and sector funds recorded growth in flow.
Inflow in active concentrated maturity funds: Date funds had a net inflow of Rs 38 thousand crore, in which liquid funds played a major role. At the same time, there was a big outflow of about 8 thousand crores in passive target maturity funds.
The emphasis continued in hybrid funds: Multi Asset Funds led a net flow of Rs 9.3 thousand crore, while the balanced advantage funds invested Rs 4.8 thousand crore.
Investors’ interest in international funds is less: In this segment, investors showed less interest and saw the least inflow here.
A close watch on the changing priorities of investors
Motilal Oswal AMC Chief of Business Passive Funds Prateek Oswal said, “Understanding the movement of funds in the financial market is necessary to take better investment decisions. Our latest report has analyzed the Cash Flow and Investors Behavior of the Mutual Fund Industry during the quarter ended December 2024. In the last 10 years, Assets Under Management (AUM) has increased by 6 times, which has now reached Rs 66.93 lakh crore. This report has revealed many important patterns, such as the dominance of active flexi cap and mid -cap funds and reaching market share of passive funds to 16%. These information can help in estimating market changes and making strategies as per the priorities of investors. ”