November Sees 21% Surge in Equity Mutual Fund Inflows
In November, equity mutual funds in India experienced a remarkable surge in inflows, reaching Rs 29,911 crore, which represents a striking 21% increase compared to Rs 24,690 crore in October. This trend reflects a growing confidence among investors, despite the market's inherent volatility. The latest data from the Association of Mutual Funds in India (AMFI) highlights the resilience of the equity market.
Even though inflows through systematic investment plans (SIPs) saw a slight decline, dropping to Rs 29,445 crore from Rs 29,529 crore in October, investors continue to back equities. Ovas Bakshi, Head of Retail Sales at Kotak Mahindra AMC, emphasized that this indicates sustained investor trust in equity investments.
The performance of small-cap and mid-cap funds was particularly noteworthy in November. Small-cap funds attracted inflows of Rs 4,406.9 crore, a substantial increase from Rs 3,476.04 crore in the previous month. Similarly, mid-cap funds saw inflows rise to Rs 4,486.91 crore, up 18% from Rs 3,807.11 crore in October. Large-cap funds also displayed impressive growth, with inflows increasing by 69% to Rs 1,639.8 crore.
Sectoral and thematic funds recorded net inflows of Rs 1,864.99 crore, up from Rs 1,366.16 crore in October. Notably, flexi-cap mutual funds received the highest inflows at Rs 8,135.01 crore, benefiting from their flexibility to invest across various market caps.
In contrast, debt mutual funds faced significant outflows amounting to Rs 25,692.63 crore in November, a stark drop from inflows of Rs 1,59,957.96 crore in October. This was primarily due to substantial withdrawals from overnight funds and liquid funds. However, money market funds managed to see inflows of Rs 11,104.37 crore.
Hybrid schemes attracted inflows of Rs 13,299.2 crore, slightly down from Rs 14,156.4 crore in October. Additionally, gold and silver exchange-traded funds (ETFs) experienced a decline in inflows, falling to Rs 3,741.79 crore and Rs 2,154 crore, respectively.
Overall, the total assets under management (AUM) of the mutual fund industry grew to Rs 80.8 lakh crore in November, up from Rs 79.88 lakh crore in October. This growth showcases the ongoing evolution and resilience of India's investment landscape amid changing market conditions.
