Equity funds and SIPs see capital inflows increase in November

Equity-focused mutual funds saw net inflows double to exceed Rs 11,614.73 crore in November from September levels, despite a market correction due to uncertainty caused by the Omicron variant of Covid.

Systematic investment plans (SIPs), which allow regular investment in mutual funds, also saw a large influx in November. Contributions via SIP reached Rs 11,004.94 crore, compared to Rs 10,518.53 crore the previous month. This is the highest monthly SIP contribution on record.

“Despite growing uncertainty due to a feared third wave of the pandemic and extreme stock market volatility, retail investors continue to benefit and therefore also stick to trusting the disciplined SIP savings mode. in mutual funds, ”said NS Venkatesh, managing director. Agent, Association of Mutual Funds in India (Amfi), which published this data.

Constant attraction

The inflow of equities is the highest in the past three months as September and October saw equity inflows of Rs 8,677.41 crore and Rs 5,214.87 crore, respectively. The upward trend in equity inflows occurs despite a correction in the equity market. Experts attribute this to investor confidence in the resilient growth of the Indian economy. “Even in the face of macroeconomic challenges related to public health, the increased likelihood of a decline in liquidity in the West and its attendant effects, India’s growth story remains largely intact. This is also reflected in the increased inflows into equity-based mutual funds, ”said Anand Dalmia, co-founder of Fisdom, a financial services company. Dalmia adds that the increased awareness and preference for mutual funds as a primary investment asset has contributed to the increase in the number of new SIP accounts and SIP contributions.

In the equity category, flexi cap programs (investing in companies through market capitalization according to changing market conditions) registered the highest inflow, at Rs 2,660.11 crore. The second highest inflow was in large cap plans (Rs 1,624.41 crore), followed by thematic and sector funds (Rs 1,522.31 crore).

The New Fund Offers (NFO) brought in Rs 2,705 crore for the same period. LIC Balanced Advantage Fund received the largest inflow of Rs 1,042 crore. In the category of hybrid plans, balanced benefit plans registered the highest inflow of Rs 5,094.03 crore in the month of November.

The global mutual fund industry saw an influx of Rs 46,165.16 crore in November, up from Rs 38,275 crore in October of this year, a substantial increase of over 20%.