Equity Mutual Fund Investments Decline in December; Yet SIP Investments Set a New Record, Know the Details

Equity mutual fund investments in December decreased by six per cent every month to Rs 28,054 crore. Industry body AMFI released the figures in this regard on Friday...

Mutual Fund Investment December Data: Equity mutual fund investments in December decreased by six percent on a monthly basis to Rs 28,054 crore. Industry body AMFI released the figures in this regard on Friday. Along with the decline in equity investments, the total assets of the mutual fund industry also saw a slight decrease.

This resulted in a decline in Assets Under Management (AUM) from Rs 80.80 lakh crore in November to Rs 80.23 lakh crore in December. This reflects the impact of heavy withdrawals from debt schemes.

Statement by AMFI CEO

Venkat N. Chalasani, Chief Executive Officer (CEO) of the Association of Mutual Funds in India (AMFI), said that the decline in the industry's AUM was mainly due to withdrawals from bond or fixed-income funds for cash management and limited market-related valuation changes.

According to AMFI data, the mutual fund industry reported net outflows of Rs 66,591 crore in December. This was mainly due to heavy withdrawals from fixed-income schemes, while equity and gold funds continued to attract investors.

Equity investments, however, softened compared to Rs 29,911 crore in November.  Nevertheless, it remained higher than Rs 24,690 crore in October. Net equity investments were Rs 30,421 crore in September and Rs 33,430 crore in August. Despite intermittent market volatility, the inflow into equities remained stable.

Increase in the number of SIP investors

This was supported by the steady contributions from Systematic Investment Plans (SIPs). Retail investor participation through SIPs (Systematic Investment Plans) surged from ₹29,445 crore in November to a record high of ₹31,000 crore in December. This reflects their preference for disciplined and long-term wealth creation strategies.

Feroze Aziz, Joint Chief Executive Officer (CEO) of Anand Rathi Wealth, said, "The data shows that investors have consistently used market dips as opportunities to invest more. The total SIP contribution in FY 2024-25 stood at ₹3.34 lakh crore, indicating a long-term perspective and confidence rather than short-term speculation."