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Inflows into equity schemes of mutual funds increased in November to ₹11,615 crore against ₹5,215 crore logged last month despite uncertainty over outbreak of Omicron dragging equity markets.
9th straight month
Equity funds have managed to attract net inflow for the ninth consecutive month. Since March, equity-oriented funds have received net inflows of ₹85,381 crore. However, they recorded net outflow of ₹46,791 crore between July 2020 and February 2021.
The fall in equity markets last month provided a good investment opportunity resulting in robust inflows. Overall, the industry registered the second highest net inflow of ₹46,165 crore this fiscal with a rise in SIP contribution.
Interestingly, all equity schemes registered a positive net inflow with flexi and large cap funds recording the highest of ₹2,660 crore and ₹1,624 crore. Thematic and focused funds also witnessed a strong inflow of ₹1,522 crore and ₹1,506 crore, respectively.
DP Singh, Chief Business Officer, SBI Mutual Fund, said flows into equity schemes will continue to remain strong as the net inflows for growth and equity-oriented schemes last month were equal to the monthly SIP book reflecting that was no net withdrawals.
Though hybrid funds witnessed a slowdown in inflow at ₹9,422 crore against ₹10,437 crore logged in October, balanced advantage and arbitrage funds saw net investments of ₹6,094 crore and ₹1,045 crore, respectively.
Himanshu Srivastava, Associate Director, Morningstar India, said with reasonably good returns on the back of the rally in equity markets, sector and thematic funds continue to attract investors. However, he added, investors need to be judicious while investing in these funds as they are cyclical in nature and tend to carry a higher risk than a regular diversified equity funds.
NFOs boost passive funds
Passively managed funds attracted ₹11,024 crore investment with four new fund offers. Interestingly, existing index funds and other ETFs also received net inflows of ₹3,521 crore and ₹6,483 core, respectively
Contribution through monthly systematic investment plan hit an all-time high at ₹11,005 crore with assets under SIP touching ₹5.47-lakh crore. The number of SIP accounts also touched an all-time high of 4.78 crore against 4.64 crore in October.
The mutual fund industry reported assets under management of ₹37.34-lakh crore last month against ₹37.33-lakh crore.
NS Venkatesh, Chief Executive, AMFI, said retail investors have displayed trust on the disciplined SIP mode of savings in mutual funds despite rising uncertainty owing to the feared third wave of the pandemic and extreme equity market volatility.
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