Index Fund Corner
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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
Rising investor interest from smaller cities
Increased adoption of technology and digital platforms is expanding the reach of mutual funds beyond metropolitan areas.
Investors from smaller cities are showing a growing appetite for equity mutual funds, which is expected to drive inflows in 2025.
Focus on high-growth sectors
Interest in sectors like technology, renewable energy, banking, and consumer durables is on the rise. Investors are turning to sectoral and thematic funds that focus on these high-growth areas.
This trend is expected to continue in 2025 as these sectors show promising growth potential.
Growth of Systematic Investment Plans (SIPs)
SIPs are playing a critical role in driving mutual fund growth. The contribution from SIPs surged by 40.45%, reaching ₹26,459 crore in December 2024.
This steady inflow signals a shift towards disciplined, long-term investing. The growing popularity of SIPs, especially among retail investors, is expected to remain a key factor in mutual fund growth in 2025.
Attractive mid and small-cap funds
While large-cap funds are expected to continue attracting steady inflows due to their stability, mid and small-cap funds are gaining traction. Investors seeking higher returns are likely to focus on these funds, which could see increased inflows in the coming year.
Strong economic fundamentals and government support
India’s strong economic fundamentals and supportive government initiatives will continue to provide a favorable environment for mutual fund growth.
These factors are expected to support investor confidence and contribute to the industry’s growth in 2025.
New Fund Offerings (NFOs) and innovation
The mutual fund industry saw the launch of 239 NFOs in 2024, raising ₹1,18,519 crore.
With the continued launch of new and innovative funds, including sectoral, thematic, and hybrid funds, investor options are expanding, offering greater diversification and investment opportunities.
Potential challenges
Despite the positive outlook, challenges like rising inflation, oil price fluctuations, and unpredictable monsoons could affect the growth of mutual funds. However, these risks are not expected to deter the overall upward trajectory of the mutual fund industry in 2025.
