MF industry’s AUM crosses ₹50 lakh-cr mark for 1st time

The mutual fund industry’s net assets under management (AUM) has touched a milestone of ₹50,77,900.36 crore for December 2023, while November's AUMs stood at ₹49,04,992.39 crore, according to the monthly data shared by industry trade body AMFI (Association of Mutual Funds in India). The AMFI says the latest achievement highlights the MF industry's ability win investor trust by providing low-cost, and long term-oriented wealth creation avenues.

The AMFI data shows the average assets under management (AAUM) for December 2023 stood at ₹51,09,071.77 crore, up from ₹48,74,812.59 crore in November. With this, the mutual fund folios also reached an all-time high of 16,48,90,272 in December 2023 as compared to 16,18,14,583 in November 2023.

On the achievement of the ₹50 lakh-crore milestone, Navneet Munot, chairman of AMFI, says: "The mutual fund industry is geared up for the next growth milestone of ₹100 lakh crores AUM and 10 crore investors, which we are sure will be achieved sooner than expected as the industry has shifted gears to accelerate distribution outreach leveraging technology across the value chain.”

Venkat Chalasani, chief executive of AMFI, says: "While the MF industry took almost 50 years to build the first ₹10 Lakh crores of AUM, the last INR 10 Lakh Crores, from ₹40 Lakh Crores to ₹50 lakh crores was amassed in just over a year."

He says the entire mutual fund industry in India, including the AMCs and the regulator, have put in focused efforts to reach investors across the country, with support from the MF distributors.

The data shows the retail MF folios, which include equity, hybrid and solution-oriented schemes, also hit an all-time high at 13,18,55,261 for December 2023 compared to 12,92,21,994 in November 2023.

The AMFI says the mutual fund industry has recorded 34 months of positive equity inflows, starting from March 2021.

The retail AUM comprising equity, hybrid and solution-oriented schemes stood at ₹28,87,504 crore for December 2023, with an average AUM of ₹28,36,139 crore.

A total of 21 schemes were launched in December 2023, in both open-ended and close-ended schemes, thereby raising a total of ₹9,872 crore.

For December 2023, the SIP contribution also surged to an all-time high of ₹ 17,610.16 crore. The number of SIP accounts stood at its highest ever 7,63,65,924 in December 2023 as compared to 7,44,13,903 in November 2023.

The SIP assets under management (AUMs) also stood at ₹9,95,925.39 crore for December 2023 as compared to 9,31,333.09 crore for November 2023.

In terms of new SIPs, the December month saw new registrations at 40,32,643, while the number of SIPs matured or discontinued or paused stood at 20,80,622. Indian mutual funds currently have about 7.44 crore SIP accounts.

The number of SIPs had also grown to its highest ever at 7.4 crore in November 2023 as compared to 7,30,02,604 in October 2023. And the SIP contribution had grown to ₹17,073.30 crore, which was the highest to date. The number of new SIPs registered in November 2023 was 30,80,185, and the SIP AUM value stood at ₹9,31,333.09 crore vs ₹8,59,923.86 crore in October.

AMFI covers all the 45 asset management companies registered with SEBI. The association in November 2023 had appointed Venkat Nageswar Chalasani as its CEO after NS Venkatesh's tenure ended after two consecutive terms of three years each.