AMFI Data: Equity Mutual Funds See Inflows For Ninth Straight Month, SIP Investments Hit Another Record
Net inflows into equity mutual funds more than doubled month-on-month to Rs 11,614.73 crore in November.
Inflows into equity mutual funds jumped to the highest in four months even as India’s stock benchmarks recorded their worst run since the onset of the Covid-19 pandemic amid concerns over the new Omicron variant and the U.S. Federal Reserve’s plan for faster tapering of monetary stimulus.
Net inflows into equity and equity-linked schemes more than doubled month-on-month to Rs 11,614.73 crore in November, according to data released by the Association of Mutual Funds in India. That’s the ninth straight month of investments into such stock plans.
That too when the slump in the domestic stock market deepened in November over the preceding month. The NSE Nifty 50 fell 3.90% and Sensex declined 3.78%—their worst month since March 2020.
Category-Wise Trends
All segments witnessed inflows in November.
Investors pumped into mid caps since March, while small-cap funds witnessed inflows for the second consecutive month. Large caps witnessed the most investments among other categories.
AMFI started reporting granular data since April 2019.
SIP Inflows
Monthly contributions into systematic investment plans rose for the seventh straight month.
According to the mutual fund lobby, monthly SIP contributions hit a fresh all-time high of Rs 11,004.94 crore. Around 14 lakh SIP accounts opened during the reported month, AMFI said in a media statement.
The number of MF SIP accounts stood at 4.78 crore as on Nov. 30 compared with 4.64 crore in October.
“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,” said NS Venkatesh, chief executive officer at AMFI.
On the back of accommodative Reserve Bank of India policy stance, with focus on economic revival and keeping inflation within target, the mutual fund industry is expected to continue to report robust growth and deliver value to its investors, he said.
Net Flows
All mutual fund schemes, debt and equity, saw a net inflow for the second month in a row.
Average and net assets under management for November rose to record highs at Rs 38.5 lakh crore and Rs 37.3 lakh crore, respectively.
Liquid funds witnessed the highest inflow since May 2020, while investors pulled out of overnight funds.
Credit risk funds, too, witnessed inflows for the seventh consecutive month.