The surge in average asset under management (AUM) of mutual funds in the December quarter can be attributed to strong new fund offers (NFO) and steady inflows through systematic investment plan (SIP). This growth trend reflects the increasing confidence of investors in the mutual fund industry.
Among the top 10 players in the mutual fund industry, Nippon India Mutual Fund and DSP MF saw the highest growth in average AUM, with an increase of 32% and 30% respectively. SBI MF and ICICI Pru MF also recorded significant growth in their average AUM over the past year.
The increase in fund collection through new fund offers by a staggering 85% demonstrates the trust investors have in the market. Thematic funds focusing on specific sectors such as manufacturing, technology, and financial services have been particularly popular among investors, accounting for a majority of the new collections.
The inflows through SIP also witnessed a substantial increase of 40% in December, indicating the growing investor confidence and disciplined approach towards investment even in the face of market volatility.
Looking ahead, both SIPs and NFOs are expected to remain key growth drivers for mutual funds in the upcoming year. With the market performance remaining strong and investor confidence on the rise, the mutual fund industry is poised for further growth and expansion.
In conclusion, the mutual fund industry’s impressive performance in the December quarter highlights the positive sentiment prevailing in the market and the growing interest of investors in innovative investment strategies. As the industry continues to evolve and adapt to changing market dynamics, mutual funds are likely to play a crucial role in wealth creation and financial planning for investors.
