57% of equity MFs outperformed benchmarks in June; multi cap funds top chart

The assets under management (AUM) of equity mutual funds grew 8.27% sequentially to ₹2.38 lakh crore in June 2024 from ₹2.202 lakh crore in May 2024 (excluding sectoral /thematic funds), according to latest report by Prabhudas Lilladher’s wealth management arm, PL Wealth Management. 

The report highlights that 57% of the funds outperformed their respectives benchmarks in June 2024. The report was based on the study of 281 open-ended equity-diversified funds.

Out of 281 schemes, 159 funds outperformed their benchmark indices in June, it adds.

As per the report, multi cap funds were the best performing category where 75% of the schemes outperformed the benchmark. It was followed by schemes of focused funds and mid cap funds which outperformed their respective benchmarks by 64% and 62%, respectively, during June 2024. Large cap funds were the worst performing fund category with only 32% outperforming the benchmark.

As per the Association of Mutual Funds of India (AMFI) monthly data, the mutual fund industry’s net AUM climbed to ₹61.15 lakh crore in June 2024, from ₹58.91 lakh crore in May 2024.

The data showed that equity mutual fund inflows touched a fresh record high of ₹40,608 crore, breaching its previous high of ₹34,697 crore in May, while contributions to SIPs, which primarily comprises of retail money, touched an all-time high of ₹21,262 crore versus ₹20,904 crore last month.

The net inflow into equity mutual funds was the highest since April 2019, when AMFI started releasing monthly mutual fund flows in the current format. Besides, equity MFs registered 40 months of positive inflows, starting from March 2021.

The data showed that the number of new SIPs registered in June 2024 stood at 55,12,962. During the month under review, the SIP AUM hit the highest ever mark of ₹12.43 lakh crore as against ₹11.53 lakh crore in the previous month. The number of SIP accounts stood at the highest ever at  8,98,66,962 compared to 8,75,89,485 in April 2024.

“­­­­­­­­­­­­­­­­­­­­The mutual fund industry has demonstrated remarkable growth, becoming a cornerstone of financial stability and wealth creation for crores of investors. The industry continued to benefit from sustained flows into equity-oriented mutual funds, hybrid funds and passive funds,” according to Venkat Chalasani, Chief Executive, AMFI.

“This expansion reflects the industry’s unwavering commitment to investor education, strong distribution, and digital innovation. As we continue to adapt and evolve in a dynamic market environment, we remain dedicated to fostering financial well-being for all our stakeholders,” adds Chalasani.

The strong performance of the Indian MF industry was attributed to political stability, which created an environment conducive to sustainable economic growth, attracting investments and fostering long-term investments.