Net inflows into equity mutual fund (MF) schemes scaled a record high in July as the market correction and a raft of new fund offerings (NFOs) lifted lump-sum collections. Active equity schemes raked in a net Rs 42,702 crore in July, going past the previous high of Rs 41,156 crore in December 2024. Systematic investment plan (SIP) inflows continued to scale new highs, rising over 4 per cent month-on-month (M-o-M) to Rs 28,464 crore.
During these two decades, the total assets managed by the industry has grown from two per cent to eight per cent of the gross domestic product (GDP).
Investors must exercise discretion to ensure they select an MF scheme based on whether it is a good fit in their investment profile and offers a superior risk-return proposition.
The number of companies had touched a low of 792 in July 2020 amid heightened uncertainty because of COVID-19.
The Securities and Exchange Board of India (Sebi) is considering a proposal to allow mutual funds (MFs) to charge a fee based on their performance, said Ananta Barua, whole-time member of the markets regulator. He said the proposal is being reviewed by a working group formed to look into cost structures. "One working group has been set up which is going to review... One of the suggestions is that if any scheme or fund is performing well above the benchmark, it (fee) can be linked to its performance.
The mutual fund industry's average assets under management grew by Rs 86,355.19 crore (Rs 863.55 billion), or 15.66 per cent, and analysts said the increased inflows into fund houses show that investors are regaining confidence in equity schemes. The combined average AUM of the 35 fund houses in the country increased to Rs 6,37,609.41 crore (Rs 6,376.09 billion) in May compared to Rs 5,51,25,422 crore (Rs 5,51,25,4.22 billion) in April.
The characteristics of growth oriented mutual fund categories and the top funds under each category based on last 5 years' performance are reviewed here.
Get your basics right with these terms explained.
'The Rs 30,954 crore inflows recorded in May 2026 reflects around 16 per cent year-on-year rise.'
Investors must be careful while comparing mutual funds. They must ensure that they are comparing funds with comparable risk profiles within the same category.
Over reliance on debt and distribution bottlenecks are some of the main problems that the industry needs to resolve.
Among index funds, the most popular products are funds tracking the Nifty 50 and Sensex, says Dwaipayan Bose, and explains the finer points of selecting the right index mutual fund.
Asset management companies launched 239 new fund offerings (NFOs) mobilising Rs 1.18 lakh crore in 2024, with sectoral or thematic equity funds emerging as the top choice of investors, according to a report by Germinate Investor Services Research. This was higher than 212 NFOs collecting Rs 63,854 crore in 2023 and 228 NFOs garnering Rs 62,187 crore in 2022.
Innovation is nothing new to the mutual fund industry. In the past, we have seen mutual funds provide add-on benefits like accident insurance, critical illness insurance and even life insurance. A recent innovation involves providing insurance benefit to the child in the event of the parents meeting with an eventuality.
At Rs 4.07 trillion, gross inflows were just shy of the record Rs 4.34 trillion mobilised in H2 of 2024, making it the second half-yearly period in which inflows crossed Rs 4 trillion.
Here's how you can get the best out of your mutual fund investment.
Net mutual fund inflows into active equity schemes in India plummeted by 40 per cent month-on-month in May, reaching a one-year low of 22,908 crore, primarily due to weaker lump-sum investments and increased redemptions amidst significant market volatility and global uncertainties.
It is important to engage the services of a competent and experienced financial planner who can help you build a mutual fund portfolio
The total AUM rose 40 per cent or Rs 6.3 lakh crore, to Rs 23 lakh crore at the end of November.
Earlier, most investors counted on traditional options like fixed deposits, gold, or property. But in 2026, you will have access to a much wider range of opportunities across different markets and sectors.
Mutual funds aspirants have the option of snapping up smaller AMCs or applying for a new licence.
As the mutual fund industry evolves, certain aspects only get worse
India's mutual fund industry is one of the brightest spots in an already fast-growing domestic financial sector.
To become a sponsor-free AMC, a MF must have positive liquid net worth and net profit of at least Rs 10 crore in all of the preceding five years.
The Association of Mutual Funds of India, the trade body representing the over Rs 135,000 crore (Rs 1,350 billion) industry, has offered Pakistan its help for developing and strengthening the capital market in that country.
After abolition of entry load on buying of mutual fund units there is more good news in store for investors. Now, they can buy or redeem (sell) mutual fund units over the Internet too.
Mutual fund houses do have several challenges ahead to win more investors.
Despite strong AUM growth, MFs lag behind other popular investment avenues. MFs received only 6 per cent of total household savings in 2021-2022.
Understanding the most common mistakes during market downturns can help you protect your investments and stay focused on your long-term financial goals, says Ramalingam Kalirajan
The net inflow in equity mutual funds plunged 76 per cent to Rs 2,258 crore in November over the preceding month amid a sharp up move in the stock market that made investors wary of higher valuation. This also marks the 21st straight month of inflows into equity schemes. Overall, the mutual fund industry registered net inflows of Rs 13,263 crore in November, slightly lower from Rs 14,045 crore seen in the previous month, data released by the Association of Mutual Funds in India (Amfi) showed on Friday.
Mutual funds are looking to tap into the special opportunities theme ahead of the results of the general election results and the continued uncertainty on the geo-political and interest rate fronts. Two fund houses - WhiteOak Capital and Samco - are set to launch special opportunities funds next week. Kotak MF has also filed papers with the regulator to launch a scheme in the same category.
Industry body Amfi to hold meeting to decide on road map.
