India's SIP Net Inflows Hit Rs 9.14 Lakh Cr, Up 233 Per Cent in 2024

The systematic investment plans (SIPs) in India have seen an impressive 233% growth in net inflows from January to November this year, reaching Rs 9.14 lakh crore compared to Rs 2.74 lakh crore in 2023, according to a report by ICRA Analytics. The growth in SIPs mirrors the resilience of the Indian economy, despite challenging geopolitical conditions.

The number of new SIPs registered has also risen significantly, reaching 49.47 lakh by the end of November, up from 30.80 lakh in November 2023. Additionally, SIP assets under management (AUM) stood at Rs 13.54 lakh crore in November 2024, compared to Rs 9.31 lakh crore in the same period last year, signalling strong investor confidence.

The Indian mutual fund (MF) industry has experienced a robust performance, with a 135% surge in net inflows and nearly 39% growth in net AUM over the past year. Experts predict that the sector will continue to grow rapidly, as India remains one of the brightest spots in the global economy.

Ashwini Kumar, Senior Vice President and Head of Market Data at ICRA Analytics commented, “With the structural growth story of the Indian economy remaining intact and India being a bright spot globally, the domestic mutual fund industry is expected to witness multi-fold growth in the coming years.”

The total inflows into the mutual fund industry saw a remarkable increase of 135.38% in November 2024, reaching Rs 60,295.30 crore, up from Rs 25,615.65 crore in November 2023. Net AUM also hit a historic milestone, touching Rs 68.08 lakh crore in November 2024, compared to Rs 49.05 lakh crore in the same month last year.

Among the various categories, large-cap equity funds experienced the highest inflows, with a surge of nearly 731%, reaching Rs 2,547.92 crore in November 2024, up from Rs 306.70 crore in the same period last year.

“Large and mid-cap funds are likely to attract strong interest from investors in the coming days, especially with the increased volatility in domestic markets driven by escalating geopolitical risks and global uncertainties,” said Kumar.

Small-cap and mid-cap funds have also seen a steady rise in AUM, and are expected to remain attractive to investors over the medium to long term. The value generated by these funds, coupled with strong regulatory frameworks and the government’s push for intrinsic economic growth, is likely to sustain investor confidence.

With the Indian mutual fund industry poised for multi-fold growth, the future looks promising for both investors and the economy at large.