The Indian mutual fund industry showcased its resilience in October 2024, even as market fluctuations led to a decline in assets under management (AUM). Domestic equity funds witnessed a 3.6% month-on-month (MoM) drop, settling at $387.32 billion, following a 6.2% decline in the Nifty index. However, the industry achieved an all-time high in equity inflows, recording $5.92 billion—a significant 37% jump from September’s $4.33 billion. Systematic Investment Plan (SIP) contributions also surged, hitting a record $3.01 billion, reflecting a robust 49.6% year-on-year growth.
Equity schemes displayed resilience, with sales rising by 3.5% MoM to reach $10.33 billion. Slower redemption rates, which fell by 22.1%, indicated greater investor confidence. SIPs continued to emerge as a cornerstone for long-term wealth creation, demonstrating the enduring trust of retail investors.
The month saw notable shifts in sector allocations. Fund managers increased their focus on Private and Public Sector Banks, Capital Goods, Healthcare, Technology, and Cement, while reducing investments in Oil & Gas, Consumer Durables, Automobiles, NBFCs, and Retail. Among equity allocations, private banks dominated with a 16.8% share, bolstered by robust performances from ICICI Bank, State Bank of India, and HDFC Bank.
Technology and Capital Goods sectors also experienced a rise in fund allocations, reflecting their promising growth prospects. On the other hand, Oil & Gas continued to underperform, hitting its lowest allocation in 11 months. These trends underline the Indian mutual fund industry’s adaptability amid changing market dynamics.
