Equity mutual funds witness 14 per cent drop in inflows in November
Weak global cues, China’s recent economic stimulus, and escalating tensions between Ukraine and Russia have impacted both Indian equity markets and the mutual fund industry. Amid these factors, the mutual fund industry witnessed a 14.19 per cent drop in equity category inflows in November on a month-on-month basis. Equity inflows decreased to Rs 35,943.49 crore in November, down from Rs 41,886.69 crore in October this year.
“However, on a year-on-year basis, inflows into equity mutual funds were up by nearly 131.35 per cent as compared with Rs 15,536.42 crore in November 2023. This indicates the sustained interest among retail investors for investing in equity mutual funds,” said Ashwini Kumar, senior vice-president and head market data, ICRA Analytics.
According to the Association of Mutual Funds in India (AMFI) data released today, the total inflows into the mutual fund industry dropped by nearly 74.86 per cent on a month-on-month basis at Rs 60,295.30 crore in November 2024, as against Rs 2,39,828.69 crore in October.
However, on a year-on-year basis, inflows were up by nearly 135.38 per cent from Rs 25,615.65 crore in November 2023. While large-cap funds and sectoral and thematic funds witnessed a drop in inflows by around 26.20 per cent and 37.63 per cent, respectively, on a month-on-month basis, small-cap and mid-cap funds witnessed a growth of around 9 per cent and 4.3 per cent, respectively
“The 5 to 6 per cent per cent correction in the domestic equity markets in October, huge outflows by FIIs followed by election in the US and a few assembly elections in India in November might have led investors to remain on the sidelines till clarity emerges. However, SIPs remained above the Rs 25,000 crore mark for the second time in row. This indicates that investor conviction is still strong on the India growth story,” said Deepak Ramaraju, senior fund manager, Shriram AMC.
According to the data, the total SIP contribution was Rs 25,320 crore in November, compared to Rs 25,323 crore in October.
Meanwhile, total AUM (Asset Under Management) of the mutual fund industry came touched Rs 68.08 lakh crore in November, up from Rs 67.25 lakh crore in October.
