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A total of 185 new funds (both open and close-ended) were launched, also known as NFOs (new fund offers) in fiscal 2024 raising a total of whopping ₹66,364 crore, shows the AMFI data

Inflows to mutual funds via systematic investment plans spiked in the fiscal year 2023-24, rising from ₹13,700 crore in April 2023 to ₹19,271 crore in March 2024, signifying a rise of 40 per cent.

Mutual fund folios hit an all-time high of 17.78 crore in March 2024. Retail MF folios also reached a new high of 14.24 crore in March 2024, compared to 13.94 crore in February 2024.

​The number of new SIPs registered in March was at 42,87,117. SIP contribution stood at an all-time high of Rs 19,270.96 crores in March as against Rs 19,186.58 crores in February.

Amar Deo Singh of Angel One says: "The investor base in the mutual fund industry has an enormous growth potential. Investors capitalize on market volatility and profit-taking. RBI is likely to cut rates in 1H 2024. SIP contributions have surpassed Rs 18000 cr. Retail is the new backbone for equity markets."

According to Rajesh Cheruvu, the rural economy is expected to revive in FY2025, with a focus on mid- and smallcap stocks and sectors catering to rural consumption. The market mood is positive, with a rise in SIP contributions and a flurry of NFOs. Investors could look at managers with robust research processes and reasonable fund manager bandwidth to consider allocations during NFOs.

Anand Varadarajan says investors can consider Gilt funds or Ultra category for different time horizons. The bond market is making peace with rate cuts. SIP contributions are rising due to the financialization of savings. Infra and banking sectors offer growth opportunities. Retail investors are now becoming crucial for the equity markets.

"While the debate is around whether we are at the late stages of a valuation cycle and investor optimism, it is equally important to know that we are at an early stage of an economic cycle. So, while valuations can possibly correct, the earnings trajectory is expected to march on for the next few years and will provide a downside buffer to markets."

Shiv Sehgal says: "With regards to dark horses, I think 2024 is likely to be export-oriented ones like IT and chemicals. This is because, globally, we have had a prolonged manufacturing recession (of more than a year), which has resulted in these stocks significantly underperforming the benchmark indices. Such a prolonged manufacturing downturn in the absence of a global recession is a historical anomaly. However, the global economy now seems to be bottoming out."

Sectoral mutual funds saw an inflow of ₹4,805 crore, smallcaps witnessed an inflow of ₹3,257 crore and multicaps saw an inflow of ₹3,038 crore.