Topic 6: MUTUAL FUND: ALL THE MERRY

In November 2024, several key market events significantly influenced mutual fund returns in India. These events were shaped by domestic and global factors, impacting investor sentiment and market dynamics. This month was characterized by a mix of geopolitical uncertainties, economic slowdowns, and shifting investor sentiment that collectively influenced mutual fund returns in India. While some funds thrived due to strong domestic inflows and sectoral performance, others struggled under the weight of external pressures and FII outflows. The Indian mutual fund industry experienced a notable increase in Assets Under Management (AUM). The AUM rose to approximately ₹68.50 trillion, reflecting a growth from ₹67.26 trillion at the end of October 2024. AUM increase can be attributed to the substantial inflows from domestic investors, with approximately ₹4.76 lakh crore invested in equity markets by late November. This influx was driven by increasing investor confidence in the equity market and strong performances from mid-cap and small-cap funds. Also the growing trend of investors opting for SIPs, which provide a disciplined approach to investing in mutual funds. Increased SIP contributions contributed positively to the overall AUM as more investors committed to regular investments. Growing awareness and understanding of financial products among Indian investors have led to increased participation in mutual funds, and regulatory measures by SEBI aimed at enhancing transparency and protecting investor interests have fostered trust in the mutual fund industry. The total SIP accounts stood at 10.12 crore and the total amount collected through SIPs was approximately ₹25,323 crore in November 2024, indicating a sustained interest in regular, systematic investments. In November 2024, the number of Systematic Investment Plans (SIPs) in the Indian mutual fund industry reached approximately 10.12 crore, reflecting a notable increase from 9.87 crore in October 2024. This represents a growth of about 25 lakh new SIP accounts added during the month. Several significant regulatory changes were implemented in the Indian mutual fund industry by the Securities and Exchange Board of India (SEBI) like prohibition of insider trading (PIT) regulations, enhanced disclosure norms, Colour-coded risk-o-meter, standardized risk change communication, regulatory changes in debt securities and lastly investment in overseas funds. These changes aimed to enhance transparency, protect investors and streamline operations within the financial markets.



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