India’s asset management industry has grown over sixfold in the past decade, with assets under management (AUM) reaching ₹66.93 lakh crore in December 2024, up from ₹10.51 lakh crore in December 2014, according to the ‘Where the Money Flows’ study by Motilal Oswal Asset Management Company (MOAMC).Index Fund CornerSponsoredScheme Name1-Year ReturnInvest NowFund CategoryExpense RatioAxis Nifty 50 Index Fund+32.80%Invest NowEquity: Large Cap0.12%Axis Nifty 100 Index Fund+38.59%Invest NowEquity: Large Cap0.21%Axis Nifty Next 50 Index Fund+71.83%Invest NowEquity: Large Cap0.25%Axis Nifty 500 Index Fund–Invest NowEquity: Flexi Cap0.10%Axis Nifty Midcap 50 Index Fund+46.03%Invest NowEquity: Mid Cap0.28%Equities lead market shareEquity funds dominated, holding 60.19% of total AUM, while debt accounted for 26.77%, hybrid funds 8.58%, and others 4.45%.
Passive funds saw significant expansion, reaching ₹10.85 lakh crore, capturing 16% of the market, while active funds held ₹56.08 lakh crore.Prateek Agrawal, MD & CEO, MOAMC, attributed this growth to economic progress and rising financial literacy. “Innovation, technology, and tailored investment solutions will be key to sustaining growth and navigating future opportunities,” he said.Equity funds attract strong inflowsThe mutual fund industry recorded net inflows of ₹199,000 crore in the December quarter. Equity funds led with ₹105,000 crore in net inflows, followed by passive equity at ₹29,000 crore.Active debt funds saw ₹47,000 crore in net inflows, while passive debt funds reported net outflows of ₹9,000 crore.”Understanding fund movement is essential for informed investment decisions. Our latest report highlights the dominance of Active Flexi Cap and Mid Cap funds, along with the rise of passive funds to 16% market share,” said Pratik Oswal, Chief of Business, Passive Funds, MOAMC.Broad-based funds gain tractionBroad-based funds captured 69% of the market, with active broad-based funds increasing their share from 57% to 70% quarter-on-quarter (QoQ).
In contrast, passive broad-based funds saw their share fall from 90% to 66%.Flexi Cap and Mid Cap funds led inflows among active equity funds, each attracting ₹15,000 crore.Investors preferred passive large-cap funds, which received 84% of net inflows, though some funds shifted towards mid-cap and small-cap categories.Thematic funds see selective growthNet inflows into thematic mutual funds dropped from ₹17,000 crore to ₹14,000 crore. Consumption and infrastructure funds attracted ₹4,500 crore. New themes emerged in passive thematic funds, including capital markets, electric vehicles, and tourism.Debt market trendsConstant Maturity funds saw the highest net inflows at ₹37,000 crore, followed by corporate bond funds (₹6,000 crore) and gilt funds (₹4,000 crore). Target Maturity funds recorded net outflows of ₹8,000 crore.Liquid funds contributed 41% of net flows, totaling ₹15,000 crore. Low duration (₹7,500 crore) and ultra-short duration (₹7,000 crore) categories also saw inflows.Hybrid and international fund activityMulti-Asset funds led the hybrid category, securing 48% of net inflows, followed by Balanced Advantage funds (25%).Aggressive Hybrid funds saw a notable increase in inflows, rising from 4% to 12% QoQ.International funds remained stagnant due to regulatory restrictions on new investments.Active and passive broad-based international funds recorded minor net inflows of ₹1,000 crore each, while passive thematic international funds saw ₹300 crore in net outflows.
