Equity-oriented mutual fund schemes saw net inflows double to over Rs 11,614.73 crore in November from the September levels, despite a correction in markets due to the uncertainty led by the Omicron variant of Covid.
Systematic investment plans (SIPs), which allow you to invest in mutual funds on a regular basis, also saw a robust inflow in November. The contributions through SIP rose to Rs 11,004.94 crore from Rs.10,518.53 crore in the previous month. This is the highest monthly SIP contribution ever.
“Despite rising uncertainty owing to a 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,” says NS Venkatesh, Chief Executive Officer, Association of Mutual Funds in India (Amfi), which published this data.
The equity inflow is the highest in the last three months as September and October saw equity inflows of Rs 8,677.41 crore and Rs 5,214.87 crore, respectively. The increasing trend in equity inflow is despite a correction in the equity market. Experts attribute this to investors’ faith in the resilient growth of the Indian economy. “Even in the face of macro-economic challenges around public health, increased probability of liquidity rollback in the west and the consequent effects, the Indian growth story remains largely intact. The same is reflected in the strengthening inflows in equity-oriented mutual funds as well,” says Anand Dalmia, Co-founder, Fisdom, a financial services company. Dalmia adds that increased awareness and preference for mutual funds as a mainstream investment asset has contributed to the number of new SIP accounts and SIP contributions surging.
In the equity category, flexi cap schemes (invest in companies across market capitalisation according to the changing market conditions) saw the highest inflow, of Rs 2,660.11 crore. The next highest inflow was in large-cap schemes (Rs 1,624.41 crore), followed by thematic and sectoral funds (Rs 1,522.31 crore).
New fund offers (NFOs) garnered Rs 2,705 crore for the same period. LIC Balanced Advantage Fund received the highest inflow of Rs 1,042 crore. In the hybrid schemes category, balanced advantage schemes saw the highest inflow of Rs 5,094.03 crore in the month of November.
The overall mutual fund industry saw an inflow of Rs 46,165.16 crore in November compared with Rs 38,275 crore in October this year, a substantial increase of more than 20 per cent.