Record surge in mutual fund assets and number of folios in FY2024! What are the factors behind this growth?

financialexpress.com:

The fiscal year 2023-24 turned out to be one of the best years for the domestic mutual funds industry as assets under
management (AUM) spurted by nearly Rs 14 lakh crore to a record Rs 53.40 lakh crore as of March 2024 compared with Rs 39.42 lakh crore as of March 2023, according to AMFI data.

This growth has been mainly driven by growing participation of individual investors, buoyant equity markets and evolving investment strategies.

At over 35%, the percentage gain was the highest since fiscal 2021 when the industry had grown 41%, the Association of Mutual Funds in India (AMFI) said.

The strong gain in industry assets was also replicated in the growth of investors in mutual funds, with the number of
folios closing at record high of 17.78 crore, converting into an investor base of around 4.46 crore.

Women comprised 23% of the investors based on their share of the AUM and men 77%, while individual investors comprised 60% as against institutional investors at40%, the AMFI data showed.

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Individual investors dominated mutual fund categories such as equity, hybrid and solution-oriented schemes, and led the growth chart as households in the country increased their capital market participation through the mutual fund route. The three categories together accounted for nearly 58% of the industry assets and 80% of the folio count as of March 2024; share of assets of these categories has increased from 45% in March 2019, showcasing their dominance in the growth of industry assets.

Equity-oriented mutual fund categories grew 55% in fiscal 2024 to Rs 23.50 lakh crore, led by strong inflows and
MTM gains. The category