“The net inflows into the mutual fund industry were to the tune of Rs 25,616 crore in November 2023, up from Rs 11,373 crore in January this year. On a year-on-year basis, net inflows surged by 93% compared with Rs 13,264 crore in November 2022,” it said.
The net AUM (assets under management) stood at around Rs 49.05 lakh crore as of November 30, 2023, up from Rs 39.62 lakh crore as of January 31, 2023.
The AUM of the domestic mutual fund industry has neared the Rs 50 lakh crore mark in November 2023 and is almost midway to the targeted aim of achieving Rs 100 lakh crore in the next few years, ICRA said.
The new year is expected to be eventful as the industry is likely to witness continued inflows which would mimic the interest rate movements in the country. Global crude oil prices may continue to remain at lower levels, said Ashwini Kumar, Head-Market Data, ICRA Analytics.
“The fundamentals of the Indian economy remain intact, which has insulated the domestic economy from global shocks. Continuation of the government’s reform agenda, prudent balancing of the fiscal and monetary policy, end of the global monetary policy tightening cycle, and possible interest rate cut by the Reserve Bank of India (RBI) if inflation remains under control, will be some of the key factors driving higher inflows into the industry in 2024,” Kumar said.
Capital market regulator SEBI is in talks with mutual fund houses and evaluating ways to make SIPs (Systematic Investment Plans) of just Rs 250 a month viable.The industry has been witnessing a surge in the number of SIPs, with the number of accounts reaching an all-time high of 7.44 crore in November 2023 compared to 7.30 core in October 2023. The SIP AUM also witnessed a sharp uptick, scaling to Rs 9.31 lakh crore for November 2023, compared to Rs 8.60 lakh crore in October 2023.
“Sachetisation will help drive the financial inclusion agenda and in turn boost the domestic equity markets. It will also channelise higher inflows through the SIP route thereby leading to greater participation of small retail investors,” he said.
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