Synopsis
In a remarkable journey over the past decade, India's asset management industry has expanded more than six times, with assets under management reaching Rs 66.93 lakh crore in December 2024. This growth reflects the industry's adaptability to investor needs and highlights emerging trends in both active and passive funds.Key Takeaways
- Asset management in India has grown over 6 times in the last decade.
- Total AUM reached Rs 66.93 lakh crore by December 2024.
- Equities account for 60.19% of total AUM.
- Net inflows of 198,000 crore recorded in Q3 FY25.
- Passive funds’ market share now stands at 16%.
Mumbai, Jan 31 (NationPress) The asset management sector in India has experienced an extraordinary expansion, increasing by over 6 times within the past decade. As of December 2024, the assets under management (AUM) reached Rs 66.93 lakh crore, compared to Rs 10.51 lakh crore in December 2014, as reported on Friday.
The AUM of passive funds rose to Rs 10.85 lakh crore, capturing a total market share of 16 percent, while the AUM for active funds is at Rs 56.08 lakh crore as of December 2024.
According to insights from Motilal Oswal Asset Management Company (MOAMC), equities dominated the landscape, holding 60.19 percent of total AUM, succeeded by debt at 26.77 percent, hybrid at 8.58 percent, and other investments at 4.45 percent.
“This growth illustrates the industry’s capability to cater to varied investor demands and enhance the financial ecosystem. The role of innovation, technology, and customized investment solutions will be crucial for ongoing growth and seizing upcoming opportunities,” stated Prateek Agrawal, MD and CEO of Motilal Oswal Asset Management Company.
The mutual fund (MF) sector recorded net inflows of 198,000 crore during Q3 FY25, driven by equity funds, especially in the active category. This quarter also saw the introduction of 84 new schemes, which attracted approximately 24.8K crore.
In the equity sector, broad-based funds captured significant attention, acquiring over 69 percent of the net inflows in this segment.
Debt funds witnessed net inflows totaling 38,000 crore, primarily from Liquid funds, while passively managed Target Maturity funds experienced notable outflows of around 8,000 crore.
Multi-Asset funds led with net inflows of 9.3K crore, followed by Balanced Advantage funds at 4.8K crore.
Understanding the flow of funds within financial markets is vital for making strategic and well-informed investment choices.
The findings reveal emerging trends, including the prominence of Active Flexi Cap and Mid Cap funds, alongside the growth of Passive Funds to a 16 percent market share, as highlighted in the report.
