Mutual fund SIP inflows jumped over 2 times in Narendra Modi’s second term as PM

The month-on-month SIP contribution by mutual fund investors has grown over two times in Narendra Modi’s second term as PM from Rs 8,183 crore in May 2019 to Rs 20,371 crore in April 2024 (last available data for comparison), an analysis by ETMutualFunds showed.

The number of SIP accounts has also increased from 2.73 crore in June 2019 to 8.70 crore in April 2024, according to the monthly data released by the Association of Mutual Funds in India (AMFI).

The number of mutual fund folios have surged by around 118% from 8.32 crore in May 2019 to 18.14 crore April 2024, according to the data of folios released by AMFI.

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The mutual fund industry’s assets under management (AUM) increased by 121% from Rs 25.93 lakh crore in May 2019 to Rs 57.25 lakh crore in April 2024. According to the monthly AMFI data, the net inflows in the mutual fund industry have also gone up from a total inflow of Rs 76,989.81 crore reported in May 2019 to Rs 2.39 lakh crore in April 2024.

Now coming to the equity mutual funds’ AUM, the net AUM went up by 242% in the last five years of Modi’s government. Among all equity categories, smallcap funds witnessed the highest increase in AUM by around 473% in the last five years of the Modi government. The AUM of smallcap funds as reported in May 2019 was Rs 46,441.55 crore, which increased to Rs 2.66 lakh crore in April 2024. The next equity category which witnessed maximum increase in AUM was dividend yield fund category. The AUM increased 426% to Rs 25,216 crore in April 2024 from Rs 4,792.59 crore in May 2019.The only category that witnessed decline in AUM was multicap funds. The total assets under management declined by 7% in the last five years of the Modi government.

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Among the equity-oriented schemes, the AUM of multi-asset allocation funds increased by 481% to Rs 74,020.68 crore in April 2024 against Rs 12,738.40 crore in May 2019. The AUM of arbitrage funds went up by 204% from Rs 54,632 crore in May 2019 to Rs 1.66 lakh crore in April 2024.

Among other scheme categories (which includes ETFs and index funds), the total asset size of index funds increased more than 3,000% from Rs 5,587 crore in May 2019 to Rs 2.23 lakh crore in April 2024. The next category on the list was fund of funds investing overseas, which saw an increase of 1,199% in the AUM. The AUM in May 2019 was Rs 1,892 crore, which went up to Rs 25,591 crore in April 2024. Gold ETFs and other ETFs witnessed an increase in AUM by 612% and 398% respectively.

Note, the above exercise is not a recommendation. The exercise was done to find how the assets under management have grown in the last five years of the Modi government in the equity category.

One should not make investment or redemption decisions based on the above exercise. One should always consider risk appetite, investment horizon, and goal before making any investment decision. Past performance does not guarantee future performance.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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