Highest investment in mutual funds for the second time, confidence in small-midcap even after risk
New Delhi| Despite the fall in domestic stock markets, investor confidence in mutual fund schemes remains intact. This is why investment in equity schemes of mutual funds increased by 14.50 per cent to Rs 41,156 crore on a monthly basis in December, 2024. This is the second record investment in these schemes. The special thing is that despite risk concerns, investors remained interested in small and midcap equity mutual funds.
According to data from Association of Mutual Funds in India (Amfi), investment in small and midcap funds rose to record highs of Rs 4,668 crore and Rs 5,093 crore respectively in December, 2024. Investment in both schemes has increased on a monthly basis by 4.3 per cent and 13.5 per cent respectively. However, investment in the Largecap Fund decreased by 21 per cent to 2,011 crore. Sensex and Nifty had fallen by about two percent last month, while midcap had gained 1.4 percent and smallcap had gained 0.6 percent.
According to the data, the Systematic Investment Plan (SIP) saw an investment of Rs 26,459 crore in December, 2024. This figure is 4.49 per cent higher than November’s 25,320 crore. For the 17th time in the last 18 months, there has been a record investment in SIP. Assets (AUMs) under the management of SIPs rose to Rs 13.63 lakh crore, about one-fifth of the total AUM of mutual funds.
Total AUM reduced to Rs 66.93 lakh crore
The total AUM of mutual fund companies declined by 1.68 per cent to Rs 66.93 lakh crore last month from Rs 68.08 lakh crore in November. Venkat Chalsani, chief executive officer (CEO), Amfi, said the total AUM of mutual fund companies has declined due to withdrawal of Rs 1.27 lakh crore from debt schemes coupled with market fluctuations.
Investors invested money in these schemes also
1. Investors in sectoral or thematic funds invested a record Rs 15,331 crore, nearly double the November figure of 7,658 crore.
2. A total investment of Rs 640 crore came in the Gold ETF in December.
3. 1,514 crore was invested in Value Fund and 456 crore in Focused Fund.
4. Investors invested Rs 188 crore in ELSS and Rs 4,731 crore in Flexi Cap Fund.
5. An investment of Rs 132.5 crore came in the retirement fund and Rs 200.85 crore in the children fund.
Raised 13,643 crore from NFO
Asset management companies raised over Rs 13,643 crore in December by launching 33 new fund offers (NFOs). More than 4,000 crore were raised from 18 NFOs in November.
