Equity Mutual Funds Inflow surges to Rs.41,155 croreWorld happenings:
The month of December saw the passing away of two eminent statesmen – Ex-Prime Minister of India Shri Manmohan Singh and Ex-President of the USA Mr Jimmy Carter. Both were seasoned politicians and had made a significant impact in their respective tenures.
Major upset transpired in Syria where the rebels toppled President Bashar al-Assad and formed a new government. Al-Assad and family were forced to flee the country after ruling for 24 years. South Korean President Yoon Suk Yeol faced impeachment when he tried to declare martial law to “safeguard from threats posed by North Korea”.
The value of a Bitcoin surpassed US$100,000 for the first time, after increasing 130% as Trump picked Paul Atkins, to chair Securities and Exchange Commission. In Paris, Notre Dame cathedral reopened after extensive restorations costing around 1 billion Euros. Chief donors being luxury group LVMH and L’Oreal; pitching in with 200 million Euros each.
Making India proud, Gukesh Dommaraju becomes the youngest ever to win the World Chess Championship! What a way to end the year.
Market Round-up: Sensex went from 80,248 points on the 1st of Dec to 78,139 points at the end of the month. There were some highs during the month, seeing 82,214 points on the 13th . Gold prices for 10gms of 24cts purity also saw fluctuations in the month of Dec, but it started at Rs.78,173 and ended only at Rs.100 higher. The lowest price seen was Rs.76,963 for 24ct purity, on the 21st of Dec.
Open-ended equity mutual fund inflows surged by 14.5% to Rs.41,155.91 crore during December due to increase of interest in small cap and sectoral funds, according to the data released by the Association of Mutual Funds of India (AMFI).
Inflows in the SIP section crossed Rs.26,000 crore level for the first time in December, with the SIP AUM reaching 13.63 lakh crore. Venkat Chalasani, Chief Executive, AMFI said, “Despite volatile market conditions, equity-oriented schemes continued to see strong inflows, reflecting investors’ confidence and commitment to stay invested for the long term.”
Investments into small-cap funds once again increased - by 13.5% to Rs.4,667.7 crore. Mid-cap and Large-cap category saw a drop in inflows this month.
Sectoral or thematic funds doubled from the previous month to Rs.15,331.54 crore in December. These numbers were achieved mainly due to the 12 New Fund Offers being able to collect Rs.11,337 crore. Hybrid funds category, which invests in more than one asset class, saw an inflow of Rs.4,369.78 crore in spite of uncertainty in market conditions. Equity fund inflows were prominent even though both Sensex and Nifty were down 2.08% and 2.02% respectively, in December.
Debt mutual funds once again was in the negative, where the fixed income segment saw an outflow of Rs.1,27,152.63 crore. Liquid funds, Money market funds, Overnight debt funds, and Ultra Short Duration funds all were in the same boat.
Conclusion: The total assets under management of the Indian Mutual Funds has grown from Rs.26.54 lakh crore in Dec 2019 to Rs.66.93 lakh crore in Dec 2024! More than 2 times in the 5 year period. In the same period, the number of investors has increased from 8.71 crore to 22.50 crore folios. This continuing upward trend is a positive indication of the nature of investors.
It is perceived that the Indian investor is now savvy enough to shift focus towards equity markets at such a time to gain from the dip. Let us hope that the Mutual Funds continue to draw interest of the investors in the coming year.
Sources: Livemint | The Guardian |Money Control | AMFI | BBC | CNN
