Large cap funds continue to bleed, shows AMFI data

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Large-cap funds continued on a downward trajectory, according to data by Association of Mutual Funds of India (AMFI) for September, 2023. Large cap funds saw net outflows worth Rs 110.6 crores. This was the 5th consecutive month when large-cap funds ran into reds. On the other hand, focussed and small-cap funds saw massive inflows, worth 3,146 crores and Rs 2,678 crores, respectively. 

However, there was a substantial dip in the funds received by small and mid-cap funds. Notably, mid-cap funds saw inflows worth Rs 2,000 crores last month. According to Melvyn Santarita, Analyst, Morningstar India, the dip could be attributed to aggressive profit booking undertaken by investors amidst news of overvaluations in the small-cap segment. 

Multi-cap funds also registered impressive inflows worth Rs 2,234.52 crores. Overall, the equity scheme space, which saw total net inflows worth  Rs 14,091 crores, slumped 30% as compared to last month. However, they were somewhat buoyed by 6 new fund launches, which raked in Rs 2,503 crores. The hybrid scheme segment space saw total net inflows of Rs 18,650 crores in September, 23. 

The Multicap category witnessed a spike in its flows, bolstered by the launch of a new fund, namely the WhiteOak Capital Multi Cap Fund, which garnered Rs 411 crores. However, thematic funds saw the most inflows amongst all equity schemes, This spike could be traced to the introduction of 4 new schemes which collected Rs 1,629 crores last month. The segment saw inflows worth Rs 4,805 crores in August, a steep rise from Rs 1,429 crore worth of inflows in July.

In September, the mutual fund industry’s net assets under management (AUM) touched Rs 46.57 crores. Mutual fund folios also hit an all-time high of about 15 crores. Amongst these, retail folios, which majorly consist of equity, hybrid and solution-oriented schemes, also registered an all-time high of 12.5 crore, as opposed to 12.3 crore the month before. In another notable feat, the number of unique investors in the Indian mutual fund space crossed 4 crores. 

Contributions via SIPs also stood at an all-time high of Rs 16.042 crores, along with the number of new SIPs registered, which were a staggering 36,77,157 for September, 23. The SIP AUM also rose to Rs 8.70 crores last month, as compared to Rs 8.47 crores in August, 23.