Equity mutual fund flows witnessed a four-month high of Rs 11,615 crores in November. This was due to a strong book of systematic investment plans (SIP) despite market volatility.
According to the Association of Mutual Funds in India (AMFI) data released on Thursday, this was the ninth consecutive month of net inflows. Net inflows to equity mutual funds were Rs 5,215 crore in October, Rs 8,677 crore in September, and Rs 8,666 crore in August.
Net inflows into equity schemes continued to be robust in November despite sharp corrections in markets caused by the Omicron variant of Covid. Furthermore, monthly systematic investment plans (SIP) surged to record high levels. The Association of Mutual Funds in India (Amfi) said Thursday that equity mutual fund schemes received a net flow of Rs10,686.77 crores in November, a four-month high.
In November, net SIP contributions reached a new high of Rs11,004.94 crores from Rs10,518.53 crores in October. Monthly SIP contributions are at a new high of Rs 11,004.94 crores.
Equity markets rebounded in November, providing investors with a good investment opportunity. This was the 9th consecutive month of net inflows since March. Since then, equity-oriented funds have received net inflows of INR 85,381 crores. From July 2020 to February 2021, equity-oriented funds lost INR 46,791 crores in net outflows. The trend has clearly reversed since then,” said Himanshu Srivastava, Associate Director – Manager Research, Morningstar India.
Several investors chose to stay invested during the market correction, as evidenced by the low redemption numbers of INR 17,476 crores compared to INR 23,456 crores in October, indicating positive sentiments among investors. As a result of net inflows of Rs 46,165 crore in November, the mutual fund industry’s assets under management reached an all-time high of Rs 38 lakh crore at November end. Flexi-cap funds registered the highest net inflow of Rs 2,660 crore in the equity segment.
Net inflows of Rs 14,893 crore were seen in the debt mutual fund segment in November. Liquid funds, medium-to-long-term funds, short-term funds, and credit risk funds also saw net inflows. There was a net inflow of Rs 9,422 crore in the hybrid mutual fund category in November. Two index funds and one other ETF were launched during the month which accumulated Rs 359 crores in cumulative assets. Index Funds and Other ETFs categories received net inflows of INR 3,521 crores and INR 6,483 crores in November, respectively.
The Flexi cap has attracted big inflows in recent months. The number of SIP accounts jumped to 4.78 crores on November 30 from 4.64 crores on October 31, while the monthly SIP contribution exceeded Rs 11,000 for the first time, ending at Rs 11,004.94 crore on November 30.
Retail investors continue to benefit from the feared third wave of the pandemic and the extreme equity market volatility, even though uncertainty is rising. They also continue to trust the disciplined SIP mode of investing in mutual funds.
“We expect the MF industry to continue to report robust growth, and deliver value to its investors, in the years to come, thanks to the accommodative policy stance of the RBI, focusing on economic growth and keeping inflation within target,” said NS Venkatesh, AMFI Chief Executive.
