Thanks to the robust new fund offers (NFO) and steady inflows through systematic investment plan (SIP), mutual funds have made most of the bullish sentiments in the stock market with their average asset under management (AUM) increasing 27 per cent in December quarter to ₹68.67 lakh crore against ₹54.13 lakh crore logged in March quarter.

Among the top 10 players, Nippon India Mutual Fund and DSP MF registered the highest growth of 32 per cent and 30 per cent with their average asset under management increasing to ₹5.70 lakh crore and ₹1.93 lakh crore in the December quarter against ₹4.31 lakh crore and ₹1.48 lakh crore logged in the March quarter.

SBI MF and ICICI Pru MF topped the table with a rise of 22 per cent and 28 per cent in the average AUM at ₹11.13 lakh crore and ₹8.74 lakh crore in last one year.

HDFC MF and Kotak Mahindra MF followed with 28 per cent jump each in average AUM last year at ₹7.87 lakh crore (₹6.13 lakh crore) and ₹4.88 lakh crore (₹3.81 lakh crore).

The mutual fund industry fund collection through new fund offers increased a whopping 85 per cent to ₹1.18 lakh crore as investors reposed their confidence on past experience. The number of NFOs jumped 13 per cent to 239 last year against 212 in 2023.

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Tailored to tap growth in specific sectors, thematic funds resonated with investors for their focused approach and alignment with market trends. Led by leading sectors such as manufacturing, technology and financial services, over 90 per cent of new collections were concentrated on thematic and Smart Beta funds, including ETFs and index funds, reflecting a shift toward targeted and innovative investment strategies, according to Germinate Investor Services study.

The overall inflows through SIP increased 40 per cent to ₹26,459 crore in December against ₹18,838 crore logged in January.

Trivesh D, COO, Tradejini, a discount broking firm, said the surge was driven by a combination of strong market performance and growing investor confidence and the sharp rise in SIP inflow was a major highlight.

Even during bearish market trend, SIP investors maintained their discipline, taking advantage of lower valuations through a ‘buy the dip’ approach, he added.

“We feel both SIPs and NFOs might remain key growth drivers for mutual funds in the coming year,” he said.