92% of Mutual Fund SIP Folios Have a Minimum Investment up to Rs. 5,000

92% of Mutual Fund SIP Folios Have a Minimum Investment up to Rs. 5,000  

By Yaseen Sahar, Financial Expert

Indian Mutual Fund industry Details…

Industry AUM (Assets Under Management) touched an all-time high of Rs.66.7 lakh crore at the end of August 2024, growing by 43% over the past year. 

Industry AUM has grown at 21% CAGR (compound annual growth rate) over the last 5 years and 10 years, respectively. AUM of equity-oriented funds grew by 55% YoY (Year on Year) vis-à-vis 27% growth of the Sensex. 

Mutual fund AUM as a percentage of bank deposits has grown about 3X in the last 10 years and amounts to over a quarter of bank deposits. 

Share of equity in total AUM rose to 61% in August 2024 from 56% a year ago. Tier I cities constituted 21% investors, Tier II cities – 19% and Tier III cities – 59% in FY24. (New) 

Number of unique investors owning mutual funds grew to an all time high of 4.91 crore in August 2024 with the industry adding 93 lakh new investors in the past 12 months vs 41 lakh in the previous year. 

SIP..!

SIPs (Systematic Investment Plans) logged an all-time high gross sales of Rs.23,547 crore in August 2024 - a 49% YoY growth. Total SIP accounts rose to 9.61 crore in August 2024 up 38% from a year ago. 

The industry recorded about ~64 lakh new SIP registrations in August 2024. SIP discontinuations declined to 57% of total registered SIPs in August 2024. 

SIP AUM touched an all-time high of Rs.13.39 lakh crore in August 2024 (about 20% of total AUM) – a 58% YoY growth. 

92% of SIP Folios Have a Ticket Size up to Rs 5000.

NFOs..!

Equity funds have been net sales positive for 42 consecutive months (over 3 years). Equity net sales (excluding the flows from SIPs and NFOs) remained in the positive zone since Feb 2024. (NFO - New fund offers)

 Aggregate NFO flows in the last 12 months ended August 2024 were Rs 1,03,850 crores (vs 71,138 crore in the year ago period) out of which equity funds comprised 96% or Rs 99,660 crores. 

Net inflows for Domestic Institutional Investors (DIIs) were Rs 3.82 lakh crore in the last 12 months (till August 2024) vs Net outflows of Rs 1.59 lakh crore for Foreign Portfolio Investors (FPIs) indicating the counter-balance provided by DIIs which includes MFs. 

Passive fund..!

Passive AUM touched an all-time high of Rs 10.96 lakh crore in August 2024 rising from Rs 7.58 lakh crore a year ago- a growth of 45%. Share of passive AUM doubled from 8% of total AUM in August 2020 to 16% in August 2024. 

Passive fund folios have grown over 13X in the last 5 Years.  Sector/Thematic category saw the highest gross and net sales among equity categories over the past 12 months. Focused and ELSS funds witnessed negative net sales in August 2024.  Most debt categories saw positive net sales in August, 2024. 2024. 

Arbitrage funds..!

Among hybrid categories, Arbitrage funds had the highest gross and net sales over the past 12 months as markets continued to remain volatile. 

Beyond top 30 cities (B-30) recorded an AUM growth of 24% CAGR over the last 5 years, outpacing the 19% CAGR growth of top 30 cities over the same period.

Maharashtra, Delhi and Gujarat were the top 3 states by mutual fund AUM while Telangana saw the highest % growth YoY.

Mr. Yaseen Sahar has been reached at rahas84@gmail.com and 98433 13512

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