Mutual Fund equity inflows hit a new high

Inflows into equity mutual funds increased 44 per cent last month to ₹ 28,463 crore against ₹ 19,705 crore recorded in February on the back of record flow through monthly systematic investment plan and new fund offers.

Multi-cap fund registered the highest inflow of ₹ 9,695 crore against ₹ 585 crore logged in February largely due to SBI Multi-cap New Fund Offer attracting investment of ₹ 8,170 crore.

Despite the equity markets remaining volatile, large and mid-cap funds saw investment of ₹ 3,165 crore (₹ 2,036 crore). The financial year-end tax planning boosted inflows into Equity linked Saving Schemes to ₹ 2,676 crore (₹ 1,098 crore) and flexi cap inflows moderated to ₹ 2,549 crore (₹ 3,874 crore).

The equity-oriented funds in all have received a robust net inflow of ₹ 164,399 crore in the financial year ended March against net outflow of ₹ 25,966 crore registered in the same period last year.

Overall, 31 NFOs attracted investment of ₹ 13,275 crore last month including 15 index funds mopping up ₹ 3,596 crore.

Inflows through SIP

Inflows through SIP hit a new high of ₹ 12,328 crore after falling marginally in February to ₹ 11,438 crore. Asset under management of SIP increased to 76 5.76 lakh crore (₹ 5.50 lakh crore).

Himanshu Srivastava, Associate Director, Morningstar India said, “After witnessing a sharp run up in the markets over the last few years, the recent fall in equity prices provided investors a good buying opportunity.”

“The perception that despite intermittent corrections the markets would continue to surge have prompted many investors sitting on fence to make the most of the dips and invest,” he added.

Outflow from debt funds touched a high of ₹ 1.14 lakh crore (₹ 8,274 crore) largely due to withdrawal of ₹ 44,604 crore and ₹ 12,852 crore from liquid and overnight funds.

Overall, asset under management of mutual funds was up a tad at ₹ 37.57 lakh crore (₹ 37.56 lakh crore).

Saugata Chatterjee, Chief Business Officer, Nippon India Mutual Fund said, “The thirteenth consecutive month of positive net inflow in equity reveals that retail investors pose their faith in equity markets undeterred by the ongoing concerns.”

Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC said, “The risk-appetite of retail and high networth investors for equities is certainly on rise which is very healthy for markets and investors in long term wealth creation.”

NS Venkatesh, Chief Executive Officer, AMFI said, “The deteriorating geo-political situation with Russia-Ukraine war, elevated hawkish US Fed stance or even the rising inflation owing to spurt in fuel prices has not deterred investor confidence in India growth story. “

Published on

April 08, 2022

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