NEW DELHI: Equity mutual funds witnessed a remarkable surge in inflows to nearly Rs 4 lakh crore in 2024, more than double the amount recorded in the preceding year, reflecting strong investor confidence and a continued shift towards long-term investing, particularly through Systematic Investment Plans (SIPs).
Despite the strong performance in 2024, the outlook for 2025 appears cautious. The mutual fund industry has started to see a slowdown in equity fund flows since early Dec, a trend attributed to increased market volatility, Santosh Joseph, co-founder and CEO of Germinate Investor Services, said.
Historically, inflows into equity funds are closely tied to market performance, and periods of market uncertainty often result in subdued investor activity. “As a result, 2025 may witness muted activity in terms of new fund launches and equity fund mobilisation especially as market volatility persists,” Joseph added. However, long-term investors may continue to stay the course, benefiting from the wealth creation potential of equity markets when conditions stabilise, said.
In 2024, the total inflow into equity and equity-oriented schemes stood at Rs 3.9 lakh crore, compared to Rs 1.6 lakh crore in 2023, according to data from the Association of Mutual Funds in India (AMFI). agencies
