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Sharp rise in Mutual fund inflows

Sharp rise in Mutual fund inflow

In today’s market conditions, retail investors are playing a vital role in indirectly supporting the stock market. The short answer is through mutual funds. The mutual fund industry has witnessed a multifold jump in monthly contributions. If we make a comparison of monthly inflows from 2016 with today’s inflows, the increase has been six times, from 3300 crores in 2016 to Rs. 19000 crores in March 2024. As the Indian economy stands strong with a good economic number, retail participants are doubling down on their bets and taking stock markets to higher levels. Today, mutual funds have about 8.20 crore SIP accounts through which investors regularly invest.

Month SIP Contribution Rs. crore
FY 2023-24 FY 2022-23 FY 2016-17
Total during FY 199219 155972 43,921
March 19,271 14,276 4,335
February 19,187 13,686 4,050
January 18,838 13,856 4,095
December 17,610 13,573 3,973
November 17,073 13,306 3,884
October 16,928 13,041 3,434
September 16,042 12,976 3,698
August 15,814 12693 3,497
July 15,245 12,140 3,334
Jun 14,734 12,276 3,310
May 14,749 12,286 3,189
April 13,728 11863 3,122

 

The assets under management (AUM) of the Indian MF industry have grown marvelously over years, from Rs. 8.25 trillion as of March 31, 2014, to Rs. 53.40 trillion as of March 31, 2024. As of March 31, 2024, the AUM of the Indian Mutual Fund Industry stood at Rs. 53,40,195 crore.

Sharp-rise-in-Mutual-fund-inflows

As people have seen a return from the stock market, sentiment has started to change to invest and grow with Dalal Street. During 2013, 57% of household savings were parked with banks, and only 0.8% of household savings were in the form of mutual funds. Fast forward to 2023, and the share of household savings in the form of bank deposits can come down significantly to about 37%, while the share of household savings in mutual funds has increased to 6.1%. As more citizens enter formal sector employment, provident and pension funds' share of household savings has increased from 14.7% in 2013 to 22.4% in 2023. As citizens come closer to the formal sector of employment and become more knowledgeable, SIP numbers, new accounts, and their share in such investment domains are set to rise further. With the advent of discount books and the spreading of awareness about “Mutual Funds Shi Hai,” describing the benefits has resulted in the addition of news registers year over year. From FY 203 to FY24, the industry has seen addition of about 70 lakh people or a 18% growth in new investors.

Year Investor count Number of investors added YOY Increase YOY
Mar-24 4,45,88,450 69,04,951 18%
Mar-23 3,76,83,499 40,18,409 12%
Mar-22 3,36,65,090 1,09,03,909 48%
Mar-21 2,27,61,181 19,61,995 9%
Mar-20 2,07,99,186 - -

 

Midcap and small cap segment have out-performed the benchmarks in past 2 years with sectors including public sector enterprises, defence, and pharmaceuticals performing well because of manufacturing and made I Indian initiative by government. Nifty small cap index and Midcap index has given 75% and 57% return over 1 year timeframe.

Following is the return of various categories

CATEGORY 1 WEEK% 1 MONTH% 3 MONTHS% 6 MONTHS% 1 YEAR% 3 YEARS% 5 YEARS%
Equity Theme - Infrastructure -0.67 9.1 10.97 30.56 66.92 35.36 24.5
Equity - Auto -1.02 6.62 11.76 25.26 57.96 29.25 19.21
Equity - Media -0.75 4.72 4.44 17.49 40 26.21 21.98
Equity - Tax Planning -1.34 5.01 4.49 17.33 39.85 22.78 18.75
Equity - Diversified -1.41 5.26 5.11 18.91 43.22 22.66 19.07
Equity Theme - Natural Resources -1.03 8.48 11.18 27.14 45.02 22.23 22.55
Exchange Traded Funds (ETFs) -2.24 3.05 4.86 17.65 36.58 18.91 15.45
Equity - Index -1.97 3.9 4.4 20.03 43.5 18.82 14.63
Equity - Banking -1.91 3.79 2.48 11.28 27.27 18.59 12.96
Equity Theme - Shariah -2.31 2.14 2.17 15.45 40.66 18.4 18.29
Equity - FMCG -2.42 -1.06 -4.43 -1.11 12.26 17.54 13.1
ETF - RGESS -1.73 1.92 3.27 15.09 29.63 17.24 15.01
Equity - Infotech -3.27 -2.26 -3.01 13.56 39.49 16.44 23.19
Equity - Pharma -1.81 2.31 4.93 21.9 49.15 15.98 23.01
Fund of Funds - Equity -2.24 1.57 5.16 16.15 28.78 14.01 14.97
Global Funds - Foreign Equity -3.87 -2.97 4.05 15.74 19.84 6.35 11.08
Global Funds - Foreign FOF -2.77 -1.3 4.33 10.81 8.44 1.05 7.62

 

If you are a regular investor and want to find a fund that could give you maximum return on your savings, then the Moneysukh Market section is made for you. You can check fund performance of various schemes, based on sector, stocks that are added in that fund, recent exit and entry and many more criteria to make you choose between so many.

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