Mumbai: The aggressive equity mutual fund (MF) program ended the 2024-25 fiscal year (FY25), with record inflows – more than double the previous year – is fund companies with strong market sentiment, especially in the first half of this year.
Despite market volatility, investor confidence remained durable, boosting the total assets (AUM) for the year by 23%. While existing stock plans continue to see strong investor interests during market rally, new funds have launched huge momentum.
New products alone reportedly brought the price of Rs 85,000 crore into the overall equity MF Kitty in FY25.
In total, 70 new active equity plans were launched during the year, with most actions focused in the department and theme categories.
Fund House also expands its products by adopting passive investment strategies within these themed spaces to meet growing investor demand.
The main driver of this growth is the sharp increase in SIP contribution, which hit Rs 2.63 crore between April and February – an increase of more than 32% from Rs 1.99 crore in fiscal 24, according to data released by the Indian Mutual Fund Association in India (AMFI).
In March alone, SIP inflows reached Rs 25,926 crore, which led to the mutual fund industry’s AUM to a historic Rs 6,574 crore – a jump from Rs 6,453 crore in February. Equity AUM alone will increase by 7.6% in the month, climbing from Rs 27.4 crore to Rs 29.5 lakh.
Flexi-Cap funds were thrust with an inflow of Rs 5,615 crore, followed by a small fund, attracting Rs 4,092 crore – reflecting ongoing interest in retail for diversification and high growth opportunities.
The AMFI report said on April 11 that medium-sized funds also saw a steady inflow of Rs 3,438 crore, while dividend income funds doubled their attractiveness to Rs 1,405 crore this month.
Although healthy inflows were recorded in most equity fund categories, large funds still faced an outflow of Rs 247.9 billion, although the pace of withdrawals began to slow from Rs 2.8666 million in February.
