Mutual Funds in India See First AUM Decline in 21 Months

In November 2024, India's mutual fund AUM decreased by 0.7% to Rs 68 lakh crore, marking the first decline in 21 months. The drop was driven by a reduction in equity-linked funds, while debt funds experienced growth. SIP inflows remained stable despite the overall downturn.

In November 2024, Indian mutual funds experienced a slight decline in their average assets under management (AUM) for the first time in 21 months, as reported by the National Stock Exchange (NSE). The total AUM fell by 0.7% month-on-month (MoM) to Rs 68 lakh crore, signaling a minor downturn in the industry's growth.

Equity-linked funds contributed significantly to this decrease, with their AUM dropping by 1.8% MoM to Rs 38.1 lakh crore, marking their first decline in three months. Conversely, debt funds demonstrated resilience, showing a 1.6% MoM increase to Rs 19.4 lakh crore. This decline was largely driven by reduced fund mobilisation across both equity and debt sectors.

The report highlighted a sharp 17.6% MoM decrease in fund mobilisation, reaching a six-month low of Rs 10.2 lakh crore. This significant drop was compounded by elevated redemptions, resulting in net inflows that were only a quarter of those in October. Despite this overall decline, SIP inflows remained steady at Rs 25,320 crore, underlining investors' trust in mutual funds as a long-term investment option, with SIP AUM constituting nearly 20% of total industry AUM.

(With inputs from agencies.)