Mumbai, Jan 14 (IANS): Domestic mutual funds (MFs) saw their equity asset under management (AUM) rise for the 11th consecutive year to Rs 33.4 lakh crore (40 per cent year-on-year growth) in 2024, a report showed on Tuesday.

The AUM growth was fuelled by an uptrend in market indices (Nifty 9 per cent growth) and higher equity scheme sales (Rs 9.12 lakh crore or 69 per cent growth), said Motilal Oswal’s Fund Folio Report.

However, redemptions also rose 40 per cent to Rs 4.64 lakh crore, leading to a rise in net inflows (more than double) to Rs 4.47 lakh crore in 2024 (all-time high) from Rs 2.06 lakh crore in CY23.

The mutual fund industry’s total AUM increased 32 per cent to Rs 66.9 lakh crore in CY24, propelled by the growth in equity funds, liquid funds, balanced funds, other ETFs funds, and income funds.

“Investors continued to park their money in mutual funds, with inflows and contributions in systematic investment plans (SIPs) reaching a new high of Rs 26,460 crore in December 24 (up 50.2 per cent YoY),” the report noted.

In December, MFs showed interest in healthcare, retail, consumer durables, technology and real estate, leading to a month-on-month rise in their weights.

Private banks (16.6 per cent) was the top sector holding for MFs in December, followed by technology (9.4 per cent), automobiles (8.2 per cent), and capital goods (7.8 per cent).

Consumer durables, retail, real estate, healthcare and textiles witnessed the maximum increase in value MoM.

The latest data by the Association of Mutual Funds of India (AMFI) showed that actively managed equity mutual fund inflows saw over 14 per cent monthly growth at Rs 41,155.9 crore in the month of December. The growth in equity mutual fund inflows came as thematic/sectoral and small-cap funds saw higher investments.

The mutual fund industry’s AUM saw significant growth over the last decade, as it increased by a whopping 524 per cent to 68.08 lakh crore in November 2024 from 10.9 lakh crore in November 2014.