Despite continued market fluctuations, investment in equity schemes of mutual funds increased by 14 percent to Rs 41,156 crore in December last. Investors remained interested in small and midcap schemes of mutual funds. Industry body Amfi said investment reached a record high this month despite concerns that both these segments could pose risks, PTI reported. Investment in Systematic Investment Plan (SIP) stood at Rs 26,459 crore, which was Rs 25,320 crore in November.
Assets under SIP management stood at Rs 13.63 lakh crore, which is about one-fifth of the total.
Total assets as on December 31, 2024
According to the news, the total assets under management of mutual funds as of December 31, 2024 stood at Rs 66.93 lakh crore, down from Rs 68.08 lakh crore in the same period a month ago. Association of Mutual Funds of India (Amfi) chief executive Venkat Chalasani attributed the decline to mark-to-market losses on reforms as well as outflows of Rs 1.27 lakh crore in debt schemes, which stood at withdrawals at the end of the quarter. This is according to past experience.
Continued interest in SIP
Responding to a question about the continued interest in equity funds and what to expect in the future, Chalasani acknowledged that there are uncertainties that could impact the market, such as Donald Trump becoming president in January. With the change in the US administration, but he said Indian investors remain confident in the equity market. Pointing to the continued interest in SIPs, Chalasani said these investments reflect investors’ optimism in the Indian markets in the long term.
A total of 33 new fund offers launched during the month
Amfi said asset management companies launched a total of 33 new fund offers during the month, raising over Rs 13,643 crore. This is more than the 18 schemes that raised more than Rs 4,000 crore in November. Within equity schemes, the sectoral or thematic category attracted investors with the highest net inflows of Rs 15,331 crore, almost double from Rs 7,658 crore in November.
Midcap and smallcap categories
The midcap category saw inflows of Rs 5,093 crore in December 2024, while the smallcap category saw inflows of Rs 4,667 crore, Amfi said, adding that these are record inflows. According to Amfi data, investment in large schemes, which many investors are recommending as safe havens, declined to Rs 2,010 crore in December from Rs 2,500 crore in November, while that in the large and midcap category stood at Rs 3,811 crore. An investment of Rs. Gold exchange traded funds witnessed a slowdown in investment for the seventh consecutive month and stood at Rs 640 crore.
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