Outlook 2024: Exploring mutual fund landscape of 2023 and future trends

livemint.com:

mutual fund industry has undergone significant transformations over the past year, marking a journey of resilience, adaptability, and an increasing impact on retail investors. With the Assets Under Management (AUM) experiencing a notable 20% year-on-year surge, from ₹40.5 trillion in November 2022 to ₹48.75 trillion in November 2023, the industry has not only weathered challenges but also showcased robust growth. As the industry continues to evolve, the new trends and insight can help investors make the right investment decisions by delving into the developments shaping the industry such as AUM trends, investor sentiments, sectoral preferences, and the growing influence of retail investors.

The trajectory of the industry in 2023 initially displayed a declining trend in AUM. However, a remarkable recovery ensued, reaching a crescendo after hitting a low point in March. This resurgence was driven by an optimistic economic outlook, buoyed by robust domestic macroeconomic indicators, including impressive GDP and PMI figures.

Despite global uncertainties, Indian equities demonstrated resilience, propelling the industry forward. The mutual fund industry's performance was underscored by strong inflows across various sectors, including Smallcap, midcap, multicap, flexicap, large and midcap, and sectoral/thematic funds equity categories. Notably, there was a shift in the proportionate share of schemes, with debt-oriented ones decreasing and equity-oriented ones witnessing an increase.