• Home
  • Blogs
  • Insights
  • Index Funds take the top spot as the fastest growing fund in SIP AUM

Index Funds take the top spot as the fastest growing fund in SIP AUM

Over the past year, Index funds have emerged as the fastest-growing fund in terms of Assets Under Management (AUM) flowing in through Systematic Investment Plan (SIP) route , achieving a growth close to 85% from Nov 23 - Nov 24 with the live SIP accounts increasing by about 80% over the same period.

Higher SIP ticket size growth in Index Funds vis-à-vis the industry:

It is also interesting to note that though the average ticket size of index funds is similar to that of the overall industry, the growth rate has been higher at around 14% for index funds as compared to around 8% for the overall industry. 

Footnote: Average Ticket Size is calculated as the ratio of SIP Contributions to the live SIP accounts

Individual Investors own majority of the Index Fund AUM:

Individual investors account for more than 60% of all the index fund AUM as of September 30, 2024. The rest of the AUM is held by Institutions such as corporates and banks.

Source: https://www.amfiindia.com/research-information/aum-data/age-wise-folio-data

Growth in the Contribution of Index Fund folios to the overall industry folios:

The Index Fund category has also seen over 12x growth in its contribution to the mutual fund industry’s folios over the past five years. Back in September 2019, index fund folios constituted a mere 0.43% of the total industry folios. Fast forward to September 2024, and they now represent around 5%.

Source: https://www.amfiindia.com/research-information/aum-data/age-wise-folio-data

Disclaimer - Please note that this article or document has been prepared on the basis of internal data/ publicly available information and other sources believed to be reliable. The information contained in this article or document is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party in any manner. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article or document.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Published on Jan 03, 2024

Read more