Mutual Funds

Equity mutual fund inflows rise to Rs 11,615 crore; flexicap funds remain investor favorites

Inflows into equity mutual funds rose to Rs 11,615 crore in November, shows the monthly data released by AMFI. The inflows can be attributed to the slight correction in the market recently. Equity mutual funds have been witnessing inflows since March this year on the back of a strong rally in the market. Some mutual fund experts believe that the correction has been an opportunity to invest for many investors.

“Correction in the equity markets in the month of November provided investors a good investment opportunity. This was the 9th consecutive month of net inflows. Since March this year, equity-oriented funds have received net inflows of INR 85,381 crores. Before that, equity-oriented funds witnessed net outflows for eight consecutive months from July 2020 to Feb 2021 loosing INR 46,791 crores. Clearly the trend has now reversed,” said Himanshu Srivastava, Associate Director – Manager Research, Morningstar India.

Most of the investors found the correction in the market as good entry point and many preferred to stay invested which is evident from the low redemption numbers of INR 17,476 crores compared to INR 23,456 crores in October, thus highlighting the positive sentiments among investors.

The mutual fund industry registered net inflows of Rs 46,165 crore in November pushing the assets under management of the industry to an all-time high of Rs 38 lakh crore at November-end. Within the equity segment, flexi cap funds saw highest net inflow worth Rs 2,660 crore. Flexi cap has been garnering big inflows in the past few months. The number of SIP accounts rose to 4.78 crore as on November 30 from 4.64 crore on October 31, while the monthly SIP contribution breached the Rs 11,000-mark for the first time ever, ending at Rs 11,004.94 crore.

“Despite rising uncertainty owing to feared third wave of the pandemic, and extreme equity market volatility, retail investors continue to benefit and hence also stick to displaying trust on the disciplined SIP mode of savings in mutual funds. On the back of accommodative RBI policy stance, with focus on economic revival and growth and keeping inflation within target, we expect MF industry to continue to report robust growth, and deliver value to its investors beyond 2021, in the years to come,” said NS Venkatesh, AMFI Chief Executive.

The debt mutual fund segment saw net inflows of Rs 14,893 crore in November. Liquid funds, medium to long duration funds, short duration funds and credit risk funds saw net inflows in November. Hybrid mutual fund category also saw net inflows of Rs 9,422 crore. Passively managed funds continued to attract significant investor interest. During the month 2 index funds and 1 Other ETFs funds were launched which cumulatively accumulated Rs 359 crores. However, existing funds continue to witness strong net inflows. In November, Index Funds and Other ETFs category received net inflow of INR 3,521 crores and INR 6,483 cores respectively.

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