The overall assets under management (AUM) for equity Mutural Funds grew by Rs 15,649 crore in a single month to settle at Rs 2.17 lakh crore in December in Gujarat, suggests data by the Association of Mutual Funds in India (AMFI).
Overall, AUM for mutual funds across different categories such as liquid, debt, gold ETFs and equity funds stood at Rs 3.5 lakh crore.
Personal finance experts attribute the growth to the exceptional rally in stock market indices coupled with a growing active investor base and new investors being lured by more new fund offers being rolled out.
“The inflows into SIPs have surpassed Rs 17,000 crore in Gujarat in December. More investors turned to mutual funds lured by handsome returns and increased awareness created by mutual funds distributors as well as AMFI. The bull run of the Indian equity markets in December especially led to better earnings per share for investors. At the same time, many investors profit booked their gains and reinvested them too,” said a financial consultant in Ahmedabad.
The S&P BSE Sensex rose from 67,481.19 on December 1, 2023, to 72,240.26 on Dec 31, 2023 – rallying 7% in merely 20 trading sessions over 31 days. The last time AUM for equity mutual funds in Gujarat showed such a sharp growth was in July 2022 at Rs 9,582.62 crore.
Over and above this, new fund offers also attracted new investors. “Equity MF AUM has continued to grow in Gujarat over the past couple of years. Investors here are particularly savvy about equity-linked funds, and with the market’s recent bull run, the returns are an additional factor that are drawing investor attention.
“Moreover, there is a sharp increase in the number of new demat accounts, with digital platforms and mobile apps luring young investors to begin trading in stocks and mutual funds,” said Kartik Patel, a mutual fund distributor in Ahmedabad.
“Looking at the consistent performance of Indian corporates, asset management companies have also launched several new fund offers (NFOs). This kept the interest of young investors in MFs upbeat,” Patel added.
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