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Updated 14:19 IST, January 26th 2025

Equity MF Inflows Doubles, Soars to Nealy 4 Lakh Crore in 2024: AMFI

According to AMFI, December data also revealed a net outflow of Rs 80,000 crore in fixed-income categories due to tax-related redemptions.

Reported by: Musharrat Shahin
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Equity MF Inflows Doubles, Soars to Nealy 4 Lakh Crore in 2024: AMFI
Equity MF Inflows Doubles, Soars to Nealy 4 Lakh Crore in 2024 | Image: Shutterstock

AMFI (Association of Mutual Funds of India) declares that the equity mutual funds saw inflows of nearly Rs 4 lakh crore in 2024—double the amount from the previous year. This growth showcases a shift toward long-term investment, driven by the increasing popularity of Systematic Investment Plans (SIPs).

Despite a minor decline in total Assets Under Management (AUM) to Rs 66.93 lakh crore, equity inflows surged to Rs 41,156 crore in December 2024, up from Rs 35,943 crore in November. This reflects sustained investor trust in the equity market.


Amitabh Kant, former CEO of Niti Aayog, highlighted that India’s mutual fund industry has grown from $120 billion in 2014 to $850 billion in 2024, driven by favourable policies and technology adoption.
He emphasised India’s impressive economic achievements. With an 8.2% growth rate, the country has become the world’s fastest-growing $4 trillion economy. 

India builds 30 kilometres of roads and 12 kilometres of railway lines daily, has increased solar energy production by 31 times in eight years, and accounts for 50% of global real-time fast payments.


MOU: Strengthening Bilateral Cooperation


India and Indonesia’s partnership during the G20 presidency brought notable success, including the inclusion of the African Union, transforming G20 into G21. By working together, both nations can strengthen Asia’s financial ecosystem and boost mutual growth.


On January 25, 2025, in New Delhi, the Association of Mutual Funds in India (AMFI) and the Indonesian Investment Managers Association (AMII) signed a Memorandum of Understanding (MOU) in the presence of top CEOs and the Indonesian President.


“A strong capital market and a thriving asset management industry, as exemplified by the success of India’s mutual fund sector, will play a crucial role in achieving these milestones. This collaboration will lay the foundation for a sustainable and globally competitive mutual fund industry in both countries.” said Navneet Munot, Chairman at AMFI.


Momentum: SIP, Midcap, and Smallcap Funds


Systematic Investment Plans (SIPs) remained a reliable pillar for retail investors, with monthly inflows increasing by nearly 50% year-on-year to Rs 26,459 crore. This steady growth underscores the maturity of India’s retail investment market.

Midcap and smallcap funds attracted Rs 9,761 crore, marking the highest monthly inflows since April 2019. The strong interest in these segments highlights growing confidence in India’s economic growth and potential.

According to AMFI, December data also revealed a net outflow of Rs 80,000 crore in fixed-income categories due to tax-related redemptions. However, robust equity participation indicates a shift in investment preferences from fixed income to equities.

Published 13:27 IST, January 26th 2025