‘With markets at peak, mutual fund redemptions surge’

New Delhi, Aug 22: Investment in mutual funds continues to grow month over month, but a recent trend shows a significant rise in redemptions as investors book profits with markets at their peak, narrowing the gap between investments and redemptions.

According to the Axis Mutual Funds monthly data report, total Assets Under Management (AUM) for mutual funds in July 2024 increased by 40 per cent compared to the previous year, but redemptions surged by 61 per cent during the same period.

The AUM in July 2024 increased to Rs 64,96,653 crore, from Rs 46,37,564 crore in July 2023, While redemptions in July 2023 was of Rs 18,28,851 crore, which surged by 60.68 per cent to Rs 29,38,613 crore in July 2024.

The experts cited that the surge in investments in mutual funds in the past year is due to the better returns provided by the industry. The surge is because of the high returns generated in the Indian stock markets in the last year.

However, the report also noted that while investments in mutual funds are increasing, redemptions are also surging due to the risk at the market being at an all-time high.