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Nifty Realty bags gold with 133% return: How investor wealth soared in FY24

The top performer in FY24 was the Nifty Realty Index, which witnessed a staggering 132.5% rise, followed by Nifty PSE (Public Sector Enterprises)

mutual funds

Sunainaa Chadha NEW DELHI
The Nifty Realty Index emerged as the top-performing benchmark index, with a a staggering 132.5% rise, followed by Nifty PSE (Public Sector Enterprises) and Nifty CPSE (Central Public Sector Enterprises) at over 100% returns each, as per an analysis by FYERS Research.

The Indian mutual fund industry enjoyed a phenomenal year in FY24, reaching a historic milestone! The total value of investor investments, known as Assets Under Management (AUM), crossed a whopping Rs 50 lakh crore mark for the first time ever. This translates to a massive 35.5% increase compared to the previous year, making it the second-highest growth rate in the past six years.

What  fueled this growth? 
Several factors contributed to this impressive achievement:

Strong Economy: India's robust economic activity and higher company earnings boosted investor confidence.

Stock Market Boom: The Indian stock market performed exceptionally well, delivering significant returns to investors. The Nifty 50, a key stock market index, rose by 28.6%, while mid-cap and small-cap stocks soared even higher.

Increased Retail Participation: More and more individual investors (retail investors) are joining the mutual fund bandwagon, contributing to the overall growth. The industry welcomed 6.8 million new unique investors, bringing the total subscriber count to 44.5 million.

Investor returns soared: 
Investors across various segments benefited from the strong market performance. Here's a glimpse of how key indices fared:

Nifty 50: Up 28.6%
Nifty Midcap 100: Up 60%
Nifty Smallcap 100: Up 70%
Almost all major indices, representing different sectors and themes, delivered double-digit returns, with the exception of the Nifty Media Index. The top performer was the Nifty Realty Index, which witnessed a staggering 132.5% rise, followed by Nifty PSE (Public Sector Enterprises) and Nifty CPSE (Central Public Sector Enterprises) at over 100% returns each.

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According to provisional data from stock exchanges, Domestic Institutional Investors (DIIs) bought equities worth Rs 2.02 lakh crore in FY24, supported by a steady monthly inflow of funds from retail investors. The contribution to Systematic Investment Plans (SIPs) increased from Rs 13,720 crore per month in April 2023 to Rs 19,270 crore by March 2024. The total number of outstanding SIP accounts reached 8.4 crore, with a net addition of 2.03 crore accounts in FY24, resulting in an SIP AUM of Rs 10.71 lakh crore.

In total, the SIP contribution for FY24 stood at Rs 1.99 lakh crore, a rise of 27.7 per cent compared to FY23. 

Mutual Funds up 366%
The total amount of new money invested in mutual funds (net flow) witnessed a massive jump in FY24. It reached a staggering Rs. 3.55 lakh crore, marking a phenomenal 366% increase compared to the previous year!

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Sectoral funds most loved
Equity-oriented schemes attracted the highest net flow of Rs. 1.84 lakh crore,  showing a 25.4% rise over FY23. Within equities, sectoral/thematic funds and small-cap funds were the most popular choices.

"Sectoral/thematic funds were the most popular subcategory, accounting for 25.1 per cent of total inflows, followed by small-cap funds at 21.8 per cent. Multi-cap, large & mid-cap, and mid-cap funds received
double-digit flows, ranging around 12.5 per cent. Large-cap and focused funds were the only two subcategories in the equity segment that experienced negative flows for the year. The total AUM of this category reached Rs.23.49 lakh crore, reflecting a growth of 54.8 per cent compared to the previous financial year," said the report. 

Hybrid funds sees investments worth Rs 1.45 lakh crore
Hybrid schemes, which invest in both stocks and bonds, witnessed a dramatic shift. After experiencing net outflows in the previous year, they received a massive Rs. 1.45 lakh crore in net inflows, reflecting a shift in investor preference towards a more balanced approach.

"Among the three main categories of schemes, the hybrid category experienced the maximum change in inflows, with net flows surging by 870 per cent to Rs 1.45 lakh crore, compared to the negative flows of Rs.18,813 crore in FY23. The
AUM of this category reached Rs 7.2 lakh crore, demonstrating a 51 per cent increase in FY24. With most asset classes showing strength, many investors opted for multi-asset allocation funds, driving the net inflows beyond the Rs 30,000 crore mark," the report added.

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The income/debt category saw lower outflows from the schemes as investors anticipated a pause in the interest rate hike cycle. They shifted their investments from debt to equity and hybrid categories. Sensing the growing interest of investors in equities, asset management companies launched 185 schemes, raising Rs 66,364 crore.

Mutual Fund Industry Gears Up

To cater to the growing investor interest in equities, asset management companies launched a total of 185 new mutual fund schemes in FY24, raising Rs. 66,364 crore in fresh investments

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First Published: Apr 18 2024 | 9:15 AM IST

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