Mutual Funds / SIP or equity mutual fund, where are people investing the most money?

Mutual Funds: Investments in equity mutual funds declined by 14% on a monthly basis in November 2024. This investment stood at Rs 35,943 crore, as against Rs 41,887 crore in October 2024. However, this was the 45th consecutive month of net inflows, indicating that mutual funds remain attractive among Indian investors. This information came from a report released by the Association of Mutual Funds in India (AMFI).

SIP contribution stable

Rs 25,320 crore was invested through Systematic Investment Plan (SIP) in November. This figure is almost equal to Rs 25,323 crore in October. This means that investors' confidence remains in regular investment through SIP.

Reasons for decline

Akhil Chaturvedi of Motilal Oswal AMC attributed various macroeconomic and geopolitical reasons behind this decline. Market volatility increased due to US election results and other global developments. Due to this, many investors adopted a "wait and watch" strategy.

Performance of Mutual Fund Industry

The total investment in the mutual fund industry in November 2024 was Rs 60,295 crore, which was much less than Rs 2.4 lakh crore in October. The main reason for this was a sharp decline in funds investing in bonds. It was Rs 1.57 lakh crore in October, which came down to just Rs 12,915 crore in November.

Analysis of investment in shares

Among the schemes investing in shares, sectoral or thematic funds topped the list with an investment of Rs 7,658 crore. However, this investment was also less than the previous months.

Flexi Cap Funds: Investment of Rs 5,084 crore in November.

Large Cap Funds: Investment fell by 26% to Rs 2,548 crore.

Mid Cap Funds: Investment of Rs 4,883 crore with an increase of 4.3%.

Small cap funds: Investments grew by 9% to Rs 4,112 crore.

Assets under management of the industry increased

Despite the decline, the net assets under management (AUM) of the mutual fund industry grew to Rs 68.08 lakh crore from Rs 67.25 lakh crore in October.

Conclusion

Although investments in equity mutual funds declined in November 2024, investors' confidence in mutual funds remains intact. This decline can be considered temporary in the long term. Investments through systematic investment plans (SIPs) remaining stable shows that investors are expanding their portfolios in a regular and systematic manner.