Mutual funds in December: Key trends from the AMFI data
The Association of Mutual Funds in India (AMFI) December 2024 data paints a compelling picture of investor behavior. Despite a slight dip in overall Assets Under Management (AUM), settling at ₹66.93 lakh crore, equity inflows remained robust.
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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
Investors contributed ₹41,156 crore to equity mutual funds, up from ₹35,943 crore in November.
Midcaps and smallcaps: A rising star
Midcap and smallcap funds attracted ₹9,761 crore, the highest monthly inflows since April 2019.
The sustained inflows into midcap and smallcap categories reflect investor confidence in India’s growth story.
Arvind Kothari, Smallcase Manager and Founder of Niveshaay, noted, “Investors see these segments as opportunities in less saturated, high-growth areas. Their resilience highlights belief in long-term wealth creation.”
December marked the fifth consecutive month of growth for these categories, with combined inflows hitting record levels.
This interest stems from strong past returns and optimism about their future potential. However, experts caution against overexposure.
Himanshu Srivastava, Associate Director at Morningstar, said, “Mid and smallcap segments are inherently volatile. Investors must align investments with their risk appetite and avoid chasing returns.”
SIP momentum drives stability
Systematic Investment Plans (SIPs) continue to anchor retail participation.
Monthly SIP inflows climbed nearly 50% YoY to ₹26,459 crore.
Suranjana Borthakur, Head of Distribution at Mirae Asset Investment Managers, said, “This growth shows confidence in India’s long-term story. SIPs offer a disciplined way to navigate market volatility.”
This steady retail engagement provides a cushion against market fluctuations.
It also reflects a structural shift in investment behavior, with investors embracing equity as a key component of their portfolios.
Sectoral funds shine
Sectoral and thematic funds saw inflows soar to ₹15,332 crore, driven by new fund offerings (NFOs). While these funds offer high-growth potential, they come with higher risks.
Sectoral funds work best as satellite portfolios. Investors should diversify and avoid overconcentration in any one theme.
A mature market
December’s data signals the maturity of Indian investors. Despite a net outflow of ₹80,000 crore in fixed-income categories, largely due to tax-related redemptions, equity participation remained strong.
The shift from fixed income to equities also highlights evolving investment strategies.
As Santosh Joseph, CEO of Germinate Investor Services said, “Investors are capitalising on market corrections and focusing on long-term goals rather than short-term trends.”
Looking ahead
The AMFI data reinforces the importance of diversification, discipline, and aligning investments with risk profiles.
Experts recommend balanced allocations across large, mid, and smallcap segments to optimise wealth creation.