Mutual fund trends: Sectoral most in demand, hybrid funds' assets under management (AUM) touches US$ 118.98 billion (Rs. 10 trillion)

The total assets under management (AUM) of the mutual fund industry surged to US$ 798.25 billion (Rs. 67,09,259 crore) in September 2024, reflecting a 0.58% rise from August and a significant 25.64% increase since March 2024, according to an analysis by Axis Mutual Fund. The industry's growth, marked by a 24.19% CAGR since March 2021, continues its upward trajectory. Equity funds led the asset class growth in September with a 3.37% rise, while hybrid funds grew by 1.64%. However, debt funds saw a decline of 1.33%, and cash assets dropped by 14.87%, indicating a shift in liquidity investments. Equity AUM stood at US$ 370.64 billion (Rs. 31,15,260 crore), with net sales of US$ 4.09 billion (Rs. 34,393 crore), and sectoral and thematic funds contributed 38.54% of total equity net sales.

Hybrid funds neared the US$ 118.98 billion (Rs. 10 lakh crore) AUM milestone, driven by net sales of US$ 610.8 million (Rs. 5,134 crore) and a compound annual growth rate (CAGR) of 30.35% since March 2021. The passive investment space also showed strong performance, with AUM reaching US$ 35.16 billion (Rs. 2,95,558 crore), up 41.54% since September 2023. Exchange-traded funds (ETFs) within this category posted a 45.43% AUM increase. On the other hand, despite growing 16.49% YoY, the debt segment faced challenges, with net sales of US$ 2.60 billion (Rs. 21,866 crore) in September. Retail and the high net worth individual (HNI) investors continued to show strong interest in equity and hybrid funds, further buoyed by new fund offerings that raised over US$ 1.73 billion (Rs.14,575 crore) across 27 schemes.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.