Hello, investors!
As we embark on a new year, January has been quite the month for Mutual Funds, with lots of action and some interesting trends. Let’s dive into the details of what shaped the Mutual Fund scene in this first month of 2025.
Industry Highlights.
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Mutual Funds are Growing: The total money managed by Mutual Funds (AUM) has gone up to ₹67.25 lakh crore. That’s a small bump from last month, but a big jump of 27.52% compared to last year. This shows that a lot of people continue to invest their money in Mutual Funds.
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Continued Growth in Folio Numbers: The industry welcomed about 41.96 lakh new folios in January, with equity-oriented schemes leading this expansion. This marks the 50th consecutive month of positive growth in folios, highlighting ongoing investor enthusiasm and confidence.
Source: AMFI, CRISIL MI&A Research
Types of Mutual Funds and Their Performance
Key Highlights and Unique Observations:
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Equity Funds: Net inflows totaled ₹39,688 crore, largely driven by strong performances in mid-cap and small-cap funds, underscoring a keen interest in varied market segments. Particularly, sectoral and thematic funds focusing on technology and healthcare have seen robust inflows, reflecting optimism about these innovation-driven sectors.
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Debt Funds: Closed the month at ₹17.06 lakh crore in AUM, witnessing significant inflows into liquid and overnight funds, which suggest a strategic preference for liquidity and safety among investors due to the uncertain economic environment.
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Hybrid Funds: Despite slight market losses, maintained a solid footing with AUM at ₹8.75 lakh crore, highlighted by substantial interest in arbitrage funds. This trend indicates a growing interest in strategies that can leverage market inefficiencies during volatility.
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Passive Funds: Saw inflows of ₹10,255 crore, with gold ETFs capturing a notable share, emphasizing their role as a safe haven during uncertain market conditions. The emergence of niche index and passive funds, such as those tracking specific industries like digital technology and sustainable energy, also highlights a shift towards targeted market exposures.
SIP (Systematic Investment Plan) Insights
Steady SIP Contributions: Investors contributed ₹26,400 crore through SIPs, demonstrating a strong commitment to regular investment amidst market fluctuations. The continued growth in SIP contributions illustrates a robust investor preference for disciplined, long-term investment strategies.
Growing SIP Participation: The increase in SIP accounts this month reflects a continuous trust and preference for systematic investments as a reliable long-term investment strategy. SIPs now significantly bolster Mutual Funds assets, accounting for nearly 19.6% of the total industry AUM.
New Schemes Launched in Jan’25
| Category | Scheme Name | Fund House |
|---|---|---|
| Debt | Union Short Duration Fund | Union Mutual Fund |
| Bajaj Finserv Gilt Fund | Bajaj Finserv Mutual Fund | |
| Equity | Mirae Asset Small Cap Fund | Mirae Asset Mutual Fund |
| ICICI Prudential Rural Opportunities Fund | ICICI Prudential Mutual Fund | |
| UTI Quant Fund | UTI Mutual Fund | |
| WhiteOak Capital Quality Equity Fund | WhiteOak Capital Mutual Fund | |
| Bajaj Finserv ELSS Tax Saver Fund | Bajaj Finserv Mutual Fund | |
| Other Schemes | Bandhan Nifty Alpha Low Volatility 30 Index Fund | Bandhan Mutual Fund |
| DSP BSE Sensex Next 30 Index Fund | DSP Mutual Fund | |
| ICICI Prudential CRISIL-IBX AAA Bond Financial Services Index – Dec 2026 | ICICI Prudential Mutual Fund | |
| Kotak Nifty Smallcap 250 Index Fund | Kotak Mutual Fund | |
| DSP BSE Sensex Next 30 ETF | DSP Mutual Fund |
Happy Investing.