Net inflows in equity mutual funds at four-month high of Rs 11,615 crore

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Net flows into equity mutual funds rose to a four-month high of Rs 11,615 crore in November on a strong SIP book despite extreme volatility in markets.  This was also the ninth consecutive monthly net inflow, data with the Association of Mutual Funds in India (AMFI) showed on Thursday.

In comparison, equity mutual funds logged net inflows to the tune of Rs 5,215 crore in October, Rs 8,677 crore in September and Rs 8,666 crore in August.

Assets Under Management at an all-time high

November saw the highest monthly net infusion since July, when equity-oriented mutual funds witnessed a net inflow of Rs 25,002 crore.

Equity schemes have been witnessing net inflows since in March this year. The segment has received a net inflow of Rs 85,381 crore during this period, highlighting the positive sentiments among investors.

Prior to this, such schemes had consistently witnessed outflows for eight months from July 2020 to February 2021, losing Rs 46,791 crore.

Overall, the mutual fund industry registered net inflows of Rs 46,165 crore in November as compared to Rs 38,275 crore in October.

The inflow pushed the assets under management (AUM) of the industry to an all-time high of Rs 38.45 lakh crore at November-end, from Rs 38.21 lakh crore at October-end.

AMFI Chief Executive N S Venkatesh attributed the impressive AUM to net flows and continued robust increase in the monthly systematic investment plan (SIP) contribution.

Within the equity segment, all categories saw net inflows. Flexi-cap funds saw highest net inflow to the tune of Rs 2,660 crore.

Apart from equities, hybrid category saw net inflows to the tune of Rs 9,422 crore compared to Rs 10,437 crore seen in the previous month.

“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,” Venkatesh, said.

“On the back of accommodative RBI policy stance, with focus on economic revival and growth and keeping inflation within target, we expect MF industry to continue to report robust growth, and deliver value to its investors beyond 2021, in the years to come,” he added.

The number of SIP accounts rose to 4.78 crore as on November 30 from 4.64 crore on October 31, while the monthly SIP contribution breached the Rs 11,000-mark for the first time ever, ending at Rs 11,004.94 crore.