India’s Mutual Fund Market 2024: Key Fund Launch Insights

India’s mutual fund market has seen significant developments from 2024 till November, driven by a mix of active and passive fund launches. Here’s an overview of the key trends influencing the market this year, based on Morningstar data.

Total Fund Launches: Active vs. Passive

According to Morningstar data, mutual fund houses have launched 208 funds in 2024 so far, including 144 active and 64 passive funds. While active funds continue to dominate the growing number of passive fund launches indicates a rising demand.

Peak Months for Fund Launches

With 18 funds launched in September and October, 17 in November, and 16 in June, active fund launches in 2024 have so far shown tremendous growth. In the meanwhile, the number of passive fund releases peaked in October with 10 funds, and in January, 9 new funds were introduced.

Category Breakdown of Fund Launches

According to Morningstar data, the following are the key trends observed in category-wise fund launches till now in 2024:

Equity Funds: With 152 launches, equity funds remained dominant in 2024, reflecting strong investor confidence despite market fluctuations.

Fixed Income Funds: There have been 27 launches of fixed income funds so far in 2024, demonstrating their existence in the market despite the turbulence.

Allocation (Hybrid) Funds: There were 16 hybrid fund launches, combining equity and debt in a single investment option.

Other Funds: The 13 launches featuring specialized strategies catering to niche market interests.

AUM Distribution Across Fund Categories

Equity Funds: In January 2024, AUM was Rs 21.45 billion; by November 2024, it had grown to Rs 1,185.12 billion.

Fixed Income Funds: AUM increased to Rs 64.04 billion in November from Rs 1.02 billion in January.

Allocation Hybrid Funds: AUM expanded from Rs 48.23 billion to Rs 169.29 billion, highlighting a shift towards balanced growth strategies.

Other Funds: AUM increased from Rs 0.86 billion in January to Rs 38.71 billion, reflecting significant growth in the market.

The mutual fund market in 2024 demonstrated adaptability and resilience, with strong growth in equity funds alongside increasing demand for passive investment options. The strategic timing of fund launches in key months further highlights the industry’s responsiveness to market dynamics.