Reflecting on 2024: A Stellar Year for Mutual Funds, and What 2025 Holds
2 days into 2025, and even though it important to look what’s up ahead— it’s hard not to look back at the incredible momentum mutual funds have gained in 2024.??
2024 for the Mutual Fund industry has been a year of growth, education, and opportunity for many investors in India, and the outlook for 2025 looks equally promising.
Mutual funds have always been a way for individuals to pool their resources, allowing professionals to manage and invest the combined money across a diversified set of asset classes—stocks, bonds, gold, and even global markets.?
Time for some facts…
1. All Time High at ?68 Trillion
The Association of Mutual Funds in India (AMFI) reported that the industry’s Asset Under Management (AUM) grew sixfold over the past decade—from ?10.90 trillion in November 2014 to an impressive ?68.08 trillion by the end of 2024.?
The Reason?
This surge is indicative of a broader shift, as more people are becoming financially aware and actively seeking easy-to-use platforms that make investing accessible to all.
2. More SIPs, More Growth
Systematic Investment Plans (SIPs)is one of the key drivers of this growth. More and more individuals, especially young Indians, are recognizing the value of regular, disciplined investing.?
In fact, SIPs crossed the ??25,000 crore monthly investment mark by October 2024. This shows how this mode of investing has become a popular choice for those aiming for long-term wealth creation, one small step at a time.
3. Overall Category-wise Growth
As of November’24, the Equity Funds AUM surged to Rs 46,650 crore. Large Caps were always the popular choice but in 2024, Mid & Small Caps saw also gained prominence. Defence, Green and PSU stocks also gained popularity.?
As of November, the Monthly flow trend of mutual funds (Rs crore) look like this:
Conclusion
As 2025 unfolds, the potential for further growth in the mutual fund industry looks bright.?
With the continued rise of financial literacy, improved access to platforms, and government incentives like tax-saving plans under ELSS (Equity-Linked Savings Schemes), the stage is set for more people to explore mutual funds as a viable option to meet their financial goals.
Whether you’re just starting out or have been exploring options for some time, 2025 is shaping up to be another exciting chapter for mutual funds. The opportunities are many, and investing journey is more simplified.?
Here’s to a better and bigger 2025 for Mutual Fund industry in India!
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