In December 2024, investments in mutual funds in India surged to unprecedented levels, reflecting increased participation from retail investors and investor confidence in long-term financial planning. As per the Association of Mutual Funds in India (AMFI), the mutual fund folios reached an all-time high of 22.5 crore. Retail folios in undivided investments corresponding to equity, hybrid, and solution-oriented schemes saw a huge jump from 17.54 crore in November to 17.89 crore in December.

Retail AUM increase marginally traversed the period from ₹39.7 lakh crore to ₹39.91 lakh crore, chiefly demonstrating a consistent flow of investment. This surge was primarily sustained by SIPs and gradually gained popularity among Indian investors. In December, 54.27 lakh new SIP registrations further catapulted the total SIP accounts to a record-breaking figure of 10.32 crore. Monthly SIP contributions have risen a record to ₹26,459 crore, signalling unwavering commitment from investors toward disciplined long-term investment strategies.

Equity mutual funds have sailed smoothly into their 46th consecutive month of net inflows since March 2021, registering an inflow of ₹41,155 crore in December against ₹35,943 crore in November. Sectoral and thematic funds have remained intact, attractive to investors notwithstanding market volatility; these have given an added boost to market confidence.

These mutual fund investments follow a sustained upward direction: they represent growing financial literacy and cognizance on the part of retail investors in India and their focus on wealth creation through diversified and systematic investing options