Equity MF Inflows Come Off Record High
Investments into equity MFs declined by 14% to `35,943 cr in Nov from a record inflow of `41,887 cr in Oct
Equity MF Inflows Come Off Record High
New Delhi: Equity mutual funds witnessed an inflow of Rs35,943 crore in November, marking a drop of 14 per cent on a month-on-month basis, amid heightened volatility in stock markets driven by various macroeconomic factors, geopolitical events and US election results.
Despite this, it marked the 45th consecutive month of net inflows into equity-oriented funds, reflecting the growing popularity of mutual funds among investors, according to data from the Association of Mutual Funds in India (AMFI) released on Tuesday. Moreover, monthly contributions from the Systematic Investment Plan (SIP) remained flat at Rs 25,320 crore last month against Rs 25,323 crore in October.
The number of SIP accounts stood at its highest ever at 10.22 crore in November, from 10.12 crore in October, as per the AMFI data. “There was heightened volatility due to various macroeconomic factors, geopolitical events and the US election results. This resulted in investors opting for a wait & watch approach, while allocating larger amounts and thus decline in lumpsum flows including flattish SIP numbers for November 2024,” Akhil Chaturvedi, CBO, Motilal Oswal AMC, said.
Overall, the mutual fund industry experienced an inflow of Rs 60,295 crore in the month under review, which was way lower than Rs 2.4 lakh crore in October. This could be due to a huge decline in inflows in debt funds to Rs 12,915 crore in November from Rs 1.57 lakh crore in the preceding month. Despite the decline, the industry’s net assets under management rose to Rs 68.08 lakh crore last month from Rs 67.25 lakh crore in October.
“Defying a tumultuous month in the equity market, the mutual fund industry’s assets reached a new pinnacle of Rs 68.08 lakh crore, driven primarily by robust inflows into growth-/equity-oriented schemes. The unwavering monthly SIP inflows remained above Rs 25,000 crore in November, showcasing the investors’ long-term vision and commitment to their financial goals, despite the short-term market fluctuations,” Venkat Chalasani, Chief Executive, AMFI, said.
