AMFI Data: Equity Mutual Funds See Inflows For Seventh Month In A Row
Equity mutual funds saw a net inflow of Rs 8,677.4 crore in September.
Investments into equity mutual funds remained steady, tracking the optimism in India’s stock market as speedier vaccinations improve demand for businesses in Asia’s third-largest economy.
Net inflows into equity and equity-linked schemes stood at Rs 8,677.4 crore in September against Rs 8,666.7 crore in August, according to data released by the Association of Mutual Funds in India.
This comes as the Sensex breached 60,000 for the first time ever during the month. It has more than doubled from its pandemic lows hit in March 2020 to become one of the best performers among major markets during the period. The Sensex has gained 2.73% in September. The NSE Nifty 50, too, neared the 18,000-mark, rising 2.84% during the month.
Category-Wise Trends
Only small caps witnessed outflows in September. That’s the second straight month when investors pulled out of such funds.
Investments resumed in large and multi caps after a month’s blip. Mid caps witnessed inflows for the seventh straight month.
AMFI started offering granular data since April 2019.
SIP Flows
Contributions into systematic investment plans rose for the fifth straight month to an all-time high in September. SIP contributions, AMFI said, have breached Rs 10,000 crore in a month for the first time.
Around 26.8 lakh SIP accounts opened in September, also a record, the mutual fund lobby said on a conference call.
Net Flows
All mutual fund schemes, debt or equity, however, saw a net outflow of Rs 47,257.4 crore in September, with average assets under management at Rs 37.4 lakh crore. That is the biggest outflow since September 2020.
Liquid funds saw a net outflow of Rs 48,379.1 crore in September, the biggest in a year. Such schemes are used by companies to park short-term cash and usually see a spike in redemption at the end of a quarter.
Overnight funds saw a net inflow of Rs 16,312 crore compared with an outflow of Rs 11,807.7 crore in August.
Investors pumped into credit-risk funds for the fifth straight month in September. Before that, such funds witnessed outflows every month at least since April 2019, barring January.