Mutual fund assets surge 34% in FY24 on market rally, inflows

Published on Apr 08, 2024 10:42

Domestic mutual funds saw a strong year, with assets soaring 34% in FY24, the highest since 2016-17. A booming stock market and investor interest fueled the growth.

Data released by the Association of Mutual Funds in India (AMFI) revealed that the average AUM for the last quarter of FY24 (Q4FY24) stood at Rs 54.1 trillion, a significant jump from Rs 40.5 trillion in Q4FY23. This marks the 12th consecutive year of AUM growth for the MF industry.

SBI Mutual Fund retained its position as the leading fund house with an average AUM of Rs 9.1 trillion in Q4, reflecting a 27% increase compared to the same period in FY23. Among the top 10 AMCs, Nippon India MF emerged as the fastest growing, experiencing a phenomenal 47% surge in average AUM to Rs 4.3 trillion. Interestingly, Tata Mutual Fund, ranked in the top 15, led the pack with a near 50% gain in average AUM.

The sharp rise in MF assets since February 2023 can be attributed largely to mark-to-market gains in equity holdings. The benchmark Nifty 50 index rose by a significant 29%, marking its best year since the pandemic-induced slump in 2020-21. Additionally, broader market indices like Nifty Smallcap 100 and Nifty Midcap 100 witnessed impressive gains of 70% and 60%, respectively.

On the investor participation front, MFs garnered a net inflow of Rs 5.1 trillion in the first 11 months of FY24.