Over 5 crore unique folios indicate the growing penetration of mutual funds while 20 crore investor folios indicate the increase in wallet share and preference for mutual funds as a saving vehicle and tool for wealth creation
Deepak Ramaraju, Senior Fund Manager, Shriram AMC
Madhu Nair, Chief Executive Officer at Union Mutual Fund
FinTech BizNews Service
Mumbai, September 11, 2024: Association of Mutual Funds in India (AMFI) has on Tuesday released Mutual Fund Industry Monthly Data for August 2024. Leading voices of the MF industry provide analytical insights on the August 2024 AMFI numbers:
Madhu Nair, Chief Executive Officer at Union Mutual Fund
“Pure active equity schemes have crossed 30 lakh crores in AUM across the industry during the month of August 2024. Equity flows for the month of August 2024 has been a mix of SIP flows, NFOs and existing schemes. Thematic Funds still top the charts, while other categories like Large cap Fund, Multi cap Fund, Large & Midcap Fund and Midcap Fund have also seen good net flows. On the Fixed Income side, flows have been predominantly on shorter end of curve like Liquid, Overnight and Money Market Funds, while some of the large treasuries seem to have taken positions in Gilt and Duration products in anticipation of interest rate cut. Hybrid Funds as well as Passive strategies have also seen good flows during the month. Overall strong flows and momentum continues across product categories for mutual funds in the month of August 2024.
Over 5 crore unique folios indicate the growing penetration of mutual funds while 20 crore investor folios indicate the increase in wallet share and preference for mutual funds as a saving vehicle and tool for wealth creation. Fund of Funds seem to be evoking interest post the taxation changes with good positive flows after a long period of time.”
Manish Mehta, National Head - Sales, Marketing & Digital Business, Kotak Mahindra AMC:
Net flows continue to remain encouraging with SIP and NFO inflows. Sectoral / thematic category of schemes witnessed strong inflows due to NFO. NFO’s seem to be the preferred route for investors to take a lumpsum allocation to mutual funds since schemes have the flexibility to invest over a stipulated time period.
Deepak Ramaraju, Senior Fund Manager, Shriram Asset Management Company
“The Mutual Fund (MF) industry continues its upward trajectory, with net AUM for August 2024 reported at Rs 66.70 lakh crore, up from Rs64.96 lakh crore in July. Both equity and debt segments saw higher inflows, with debt net flows rising by Rs45,169 crore and equity net flows increasing by Rs38,239 crore. The thematic equity category maintained its leadership, with AUM at Rs4.44 lakh crore, attracting Rs18,117 crore in August, marking the second consecutive month of strong inflows. In the NFO space, thematic funds garnered an additional Rs10,202 crore. Large, mid, and small-cap funds also experienced increased net flows compared to the previous month. For the first time, the number of MF folios reached 20.45 crore, showcasing growing investor confidence in the mutual fund industry. SIP figures are still awaited, but expectations are high for record numbers, driven by the strong equity inflows. Overall, MF investors, who are becoming increasingly mature, continue to express confidence in the Indian economy and capital markets.
The AMFI data indicates that domestic flows continue to be strong and despite the global uncertainty and volatility, this will continue to drive the markets. Despite stretched valuations, the demand continues to remain stronger, especially in the thematic, mid and small-caps funds. A partial shift of inflows from multi-cap to large was witnessed and this can be temporary due to valuation differences.
The share of net inflows to small-cap funds has doubled and flexi-cap funds saw an increase of 12%, indicating stronger demand for equities as an asset class despite high valuations.”
Akhil Chaturvedi, Executive Director & Chief Business Officer, Motilal Oswal AMC
“We are interestingly seeing investors balancing their asset allocation in favour of large cap, Multicap and flexi cap funds. Give the run up in mid and small cap space, managing risk is paramount today and from that perspective this is a good development. Thematic funds through NFO’s are also garnering high inflows, new themes trying to benefit from government reforms also offer opportunity to participate through tactical allocation. SIP’s continue to grow about 1% every month, this is very healthy for long term growth of the industry and investors to increase their equity allocation in a disciplined way.”
