He mutual fund industry In India, growth has increased sevenfold over the last 10 years, and assets under management (AUM) have increased from ₹8.3 lakh crore in December 2013 ₹61.2 lakh crore by June 2024, Motilal Oswal said in a report for the quarter ended June 30, 2024.
The ‘Where the Money Flows’ report showed that assets under management of passive funds had increased to ₹10.2 lakh crore, with 17 per cent of the total market share, while ‘active funds’ AUM stood at ₹50.9 lakh crore by June 2024.
Equity holds the majority stake with 59.75 percent, followed by debt (26.95 percent), hybrids (8.85 percent) and others (4.44 percent).
Equity in passive schemes
The mutual fund industry recorded net inflows of around ₹325,000 crore in the June quarter of fiscal 2024-25. Working capital led the way with net inflows of ₹280,000 crore rupees followed by ₹45,000 crore in liabilities.
Until passive schemes In terms of investments, stocks accounted for a substantial share, with around 88 percent of net inflows, while commodities accounted for around 8 percent.
Active debt funds experienced net inflows of almost ₹163 billion rupees.
Key Observations
In the equity segment, broad-based and arbitrage funds stole the show, capturing more than 73 percent of net inflows in the category.
Debt mutual funds experienced significant net inflows driven primarily by liquidity and money market funds (over 85 percent), followed by overnight funds. In general, investors use debt funds with a maturity of up to one year to store excess cash in the short term, leading to high volatility in inflows and outflows, the report said.
In addition, the June quarter continued to witness the resurgence of hybrid fundMulti-asset funds led the market with net inflows of ₹8,500 crore, followed by capital savings (Rs 3,200 crore) and balanced advantage funds ( ₹2.6 billion rupees).
In addition, investors refrained from investing in international funds as they witnessed net outflows of ₹1,500 crore, driven primarily by active fund outflows amounting to Rs. ₹1,000 crore rupees.
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