NEW DELHI, Dec 10: Equity mutual funds reported an inflow of ₹35,943 crore in November, reflecting a 14% decrease from the previous month. This decline is attributed to increased volatility influenced by several macroeconomic factors, geopolitical situations, and results from the US elections.
Nonetheless, this marks the 45th consecutive month of net inflows into equity-oriented funds, indicating the growing appeal of mutual funds among investors, as per data released by the Association of Mutual Funds in India (AMFI) on Tuesday.
According to Akhil Chaturvedi, CBO of Motilal Oswal AMC, “The heightened market volatility led investors to adopt a cautious stance, resulting in decreased lump-sum investments and stable SIP numbers for November 2024.”
In total, the mutual fund industry recorded inflows of ₹60,295 crore during the month, compared to ₹2.4 lakh crore in October.
Despite the downturn in equity inflows, the industry’s net assets under management increased to ₹68.08 lakh crore last month, up from ₹67.25 lakh crore in October.
Equity-oriented schemes saw an inflow of ₹35,943 crore in November, a drop from the record ₹41,887 crore in October.
Among equity schemes, sectoral thematic funds drew the largest net inflow of ₹7,658 crore during the month, though this was lower than the ₹12,279 crore and ₹13,255 crore recorded in October and September, respectively.
Inflows into large-cap funds decreased from ₹3,452 crore in October to ₹2,548 crore in November, while small-cap funds experienced an increase from ₹3,772 crore to ₹4,112 crore during the same timeframe.
There’s been a notable shift from lower-risk categories, such as large-cap and hybrid funds, to higher-risk options like small-cap funds, while new fund offer (NFO) activity has slowed down over the past month. (PTI)
Leave a Reply