According to the Association for Mutual Funds in India (AMFI), India’s mutual fund industry witnessed a significant 40% growth in asset size, rising to $798 billion in November 2024 from $572 billion in November 2023. The surge was primarily driven by retail investors’ growing preference for equity schemes. Systematic Investment Plans (SIPs) witnessed a 48% rise, with contributions soaring from $2 billion in November 2023 to $2.97 billion in November 2024.
Equity-oriented schemes now constitute 59.7% of the total mutual fund assets, a notable increase from 54.9% last year, while debt-oriented schemes declined to 14.8% from 18.5%. Individual investors, including retail and high-net-worth individuals (HNIs), account for a dominant 87% of assets in equity funds. Conversely, institutional investors hold a significant share in liquid and money market schemes (88%), debt-oriented schemes (64%), and ETFs and Funds of Funds (88%).
The past year also saw the introduction of 205 New Fund Offers (NFOs), which collectively raised $11.73 billion, emphasizing the rising enthusiasm for equity investments. Individual investor assets grew by 43.47%, reaching $486 billion, while institutional investor assets increased by 34% to $312 billion. The data underscores a clear shift, with individuals favoring equity funds, while institutions concentrate their investments in liquid and debt-oriented schemes.
