SIP contributions in November were practically stable at Rs 29,445 crore, which is a little less than the Rs 29,529 crore recorded in October, as per the data that was published on Thursday by the Association of Mutual Funds in India (AMFI).
Even though there was this slight dip, the total participation of investors in mutual funds was still robust throughout the month.
Equity inflows surge
Net equity inflows underwent a healthy increase, jumping up to Rs 29,894 crore in November which is a significant rise from the Rs 24,671 crore in October.
The overall assets managed by the industry increased as well and touched the figure of Rs 80.80 lakh crore in comparison to the previous month’s Rs 79.87 lakh crore.
“Flows of this month highlight a cautious risk appetite which is being supported by the presence of deep domestic liquidity, robust and loyal retail SIP participation, and a positive view on the medium-term economic and corporate earnings outlook for India,” were the words of the market’s experts.
Among the equity sectors, large-cap funds gathered Rs 1,640 crore which is an increase from Rs 972 crore in October.
The mid-cap funds have still been in high demand as the inflows went up to Rs 4,487 crore from Rs 3,807 crore.
Small-cap funds, too, saw an increase in their inflows amounting to Rs 4,407 crore which is a rise from the Rs 3,476 crore a month earlier.
Sector funds gain momentum
On the other hand, Gold ETFs experienced a drastic drop in inflows, coming down to Rs 3,742 crore from Rs 7,743 crore in the month of October. Besides that, other ETFs did better as their inflows went up to Rs 9,721 crore when compared to the previous figure of Rs 6,182 crore, according to IANS.
Furthermore, sectoral and thematic funds were also in demand, pulling in Rs 1,865 crore as against Rs 1,366 crore in October.
Liquid funds outflows ease
November witnessed liquid funds reporting net outflows of Rs 14,050 crore, which however turned out to be a great deal lesser than the massive outflows of October’s Rs 89,375 crore.
Dividend yield funds were still witnessing investor exit, as the outflow increased to Rs 278 crore from Rs 179 crore in the previous month.
“Market experts expressed that it is still hard to tell when and how fast the monetary easing will take place and that therefore the cash flows will be mostly directed to the shorter-duration and high-quality strategies, with the investors preferring to wait for the clearer policy signals before taking on duration exposure.