As of September 2024, the mutual fund industry’s assets under management (AUM) reached an impressive $798.25 billion, marking a 0.58% increase from August and a remarkable 25.64% jump since March 2024, according to a report from Axis Mutual Fund. The industry has maintained strong growth, with a compound annual growth rate (CAGR) of 24.19% since March 2021. Equity funds led the charge in September with a 3.37% growth, while hybrid funds followed with a 1.64% rise. In contrast, debt funds experienced a 1.33% drop, and cash assets saw a sharp 14.87% decline, indicating a change in liquidity preferences.
Equity AUM totaled $370.64 billion, with net sales amounting to $4.09 billion, largely driven by sectoral and thematic funds, which accounted for 38.54% of total equity sales. Hybrid funds approached the $118.98 billion milestone, buoyed by net sales of $610.8 million and an impressive CAGR of 30.35% since March 2021. The passive investment sector also saw strong gains, with AUM reaching $35.16 billion, a 41.54% increase from September 2023. ETFs within this space recorded a 45.43% rise in AUM.
Despite a year-over-year growth of 16.49%, the debt segment faced difficulties, with net sales of $2.60 billion in September. Retail and high-net-worth individuals (HNIs) continued to invest heavily in equity and hybrid funds, supported by new fund launches, which collectively raised over $1.73 billion across 27 schemes.
