India’s mutual fund industry has reached new heights in December 2024, with mutual fund folios hitting an all-time high. According to latest data released by Association of Mutual Funds in India (AMFI), total number of mutual fund folios has reached 22,50,03,545, marking a significant milestone. This surge in number of folios indicates growing retail participation in mutual funds, especially in equity, hybrid, and solution-oriented schemes. Along with this growth in mutual fund folios, Systematic Investment Plans (SIPs) have also seen a substantial rise, signaling strong investor confidence and long-term commitment to mutual fund investments.
Key Data of December 2024
| Metric | December 2024 | November 2024 | Growth |
| Total Mutual Fund Folios | 22,50,03,545 | N/A | Record high |
| Retail Mutual Fund Folios | 17,89,93,911 | 17,54,84,468 | Increase of 35,09,443 folios |
| Retail AUM | Rs 39,91,313 crores | Rs 39,70,220 crores | Rs 21,093 crores growth |
| SIP Contributions | Rs 26,459.49 crores | Rs 25,319.66 crores | Rs 1,139.83 crores growth |
| New SIP Registrations | 54,27,201 | N/A | Record new registrations |
| SIP AUM | Rs 13,63,137.39 crores | N/A | Increase in SIP AUM |
| Total SIP Accounts | 10,32,02,796 | 10,22,66,590 | Increase of 9,36,206 SIP accounts |
| Equity Mutual Fund Inflows | Rs 41,155 crore | Rs 35,943.4 crore | 14.5% increase |
Retail Investor Growth and Contribution
latest figures highlight a steady growth trajectory in retail mutual fund sector, with retail mutual fund folios reaching a new high of 17,89,93,911 in December 2024. This is an increase of 35,09,443 folios compared to November 2024, reflecting growing investor interest. retail assets under management (AUM) also saw a slight rise to Rs 39,91,313 crores, up from Rs 39,70,220 crores in November 2024.
Retail investors, including those opting for equity, hybrid, and solution-oriented schemes, have significantly contributed to growth in mutual fund folios. This surge demonstrates increasing trust and interest of Indian retail investor in mutual funds as a viable long-term investment option.
SIP Surge: A Sign of Confidence
A major highlight of December 2024 is exceptional performance of Systematic Investment Plans (SIPs), with 54,27,201 new SIP registrations, setting a new record. This growth is a clear indication of investors’ rising faith in SIP route as a disciplined, long-term investment strategy.
total SIP AUM reached an impressive Rs 13,63,137.39 crores in December, reflecting strong investor commitment. Furthermore, SIP contributions also saw a growth of Rs 1,139.83 crores, reaching Rs 26,459.49 crore in December, up from Rs 25,319.66 crore in November 2024.
rise in SIP registrations and contributions reflects robust growth of mutual fund investments, particularly in retail segment, which has been a major contributor to mutual fund industry’s overall performance.
Equity Mutual Funds: Strong Inflows Despite Market Volatility
Equity mutual funds continued to see significant inflows, with Rs 41,155 crore invested in December 2024, marking a 14.5% increase compared to Rs 35,943.4 crore in November 2024. This sustained growth in equity inflows has been consistent since March 2021, making December 2024 46th consecutive month of positive equity inflows.
consistent performance of equity mutual funds amidst market fluctuations is a testament to resilience and commitment of Indian investors. These continued inflows demonstrate that retail investors have not been deterred by short-term market volatility but are instead focusing on long-term investment goals.
According to Venkat Chalasani, Chief Executive of AMFI, “Despite volatile market conditions, equity-oriented schemes continued to see strong inflows, reflecting investors’ confidence and commitment to stay invested for long term. This behavior highlights growing maturity of investors. SIP contribution reached an all-time high of Rs 26,459.49 crores in December 2024, reflecting investors’ steadfast commitment to their financial goals.”
Investor Confidence in Sectoral and Thematic Funds
As part of broader trend in equity investments, sectoral and thematic funds have witnessed notable growth, with a marked interest in mid- and small-cap segments. This indicates that investors are increasingly diversifying their portfolios, focusing on specific sectors or themes that show potential for higher growth, despite volatility in broader market indices.
Suranjana Borthakur, Head of Distribution and Strategic Alliances at Mirae Asset Investment Managers, commented on strong performance of SIPs, saying, “Despite market volatility, SIP numbers have remained strong, reflecting retail investor confidence in long-term investments in India. near 50% growth in SIPs over past year is a testament to strong conviction of investors.”
Market Trends and Investment Behavior
increase in both SIP inflows and equity mutual fund inflows aligns with broader trends in India’s investment landscape, where investors are prioritizing long-term wealth creation over short-term market fluctuations. This shift reflects a more informed and mature retail investor base, with an increasing number of individuals opting for mutual funds, especially SIPs, as their preferred investment vehicle.
As mutual fund industry continues to experience strong growth, behavior of investors indicates that they are increasingly viewing these investments as a way to secure their financial futures. sustained growth of SIPs, particularly in context of volatile markets, suggests a growing understanding of power of compounding and long-term nature of mutual fund investing.
Role of Financial Advisors and Distributors
strong SIP growth also underscores importance of financial advisors and distributors in guiding retail investors. As investors become more educated about benefits of SIPs and mutual funds, financial advisors play a crucial role in helping them navigate investment choices, manage risk, and stay focused on long-term goals.
contribution of distributors, as well as digital platforms, has been critical in simplifying process of investing in mutual funds and SIPs, making it more accessible to masses. convenience of investing in SIPs through online platforms has made it easier for small and medium investors to participate in mutual fund market.
Conclusion
data for December 2024 paints an optimistic picture for India’s mutual fund industry. With mutual fund folios reaching record highs and SIP inflows growing, retail investor base is expanding, showing increasing confidence in long-term investments. Despite market volatility, sustained growth of equity mutual funds and SIPs highlights maturing investment culture among Indian investors.
This upward trend not only demonstrates resilience of Indian mutual fund sector but also signals a shift towards more diversified and long-term investment strategies among nation’s investors. strong performance of SIPs, in particular, sets stage for continued growth in mutual fund industry, contributing to India’s economic stability and overall growth of its financial markets.
Disclaimer: data presented in this article, Mutual Fund Folios Hit Record High, SIP Inflows Grow In Dec 2024, is based on publicly available reports from Association of Mutual Funds in India (AMFI) and other official sources. While every effort has been made to ensure accuracy of information, readers are encouraged to consult with financial experts or official reports for most current and precise data.
