The equity mutual fund industry saw a significant increase in inflows in December 2024, with a rise of 14% amounting to ₹41,156 crore compared to ₹35,943 crore in November. This surge in inflows was primarily driven by new fund offers (NFOs) within the industry.
A noteworthy highlight was the substantial inflow of ₹15,332 crore into thematic funds, with 12 thematic NFOs contributing ₹11,337 crore. The mid and flexi-cap funds also saw healthy inflows of ₹5,093 crore and ₹4,731 crore respectively.
Despite the steady inflows, the overall equity assets under management remained flat at ₹30.57 lakh crore due to mark-to-market losses. In 2024, equity mutual funds received a net inflow of ₹3.94 lakh crore, marking a significant increase from the previous year.
The benchmark Sensex and Nifty were down 2% each in December, settling at 78,139 points and 23,644 points respectively. Inflows through Systematic Investment Plans (SIPs) also saw a jump to ₹26,459 crore.
Experts caution investors about the volatility of thematic funds and advise careful timing of entry and exit. They also emphasize the importance of balanced allocation in large, mid, and small-cap funds for wealth generation.
Despite market volatility, equity-oriented schemes continued to see strong inflows, reflecting investors’ confidence in long-term investments. On the debt side, outflows of ₹1.27 lakh crore were attributed to the usual quarter-end phenomenon and are expected to normalize soon.
Overall, the positive inflows into equity funds amidst muted market performance indicate investors’ commitment to staying invested. Looking ahead, a forward-looking approach to returns and a focus on asset allocation could potentially yield solid returns amid global volatility.
