Net inflow of Rs 25 thousand crore into equity MFs in December, shows data
– World Affairs SRS
The inflow through the Systematic Investment Plan (SIP) route for December stood at Rs 11,305.34 crore, as against the monthly SIP contribution of Rs 11,004.94 crore in November.
Market players say that Indian investors continue to believe in equity funds and the inflows were also higher due to new fund offers (NFOs) brought out by several fund houses. In December, the fund house launched six equity-oriented schemes collecting Rs 12,446 crore. Three multi-cap schemes saw collections of Rs 9,509 crore, while the other three subject funds collected Rs 2,937 crore.
Sunil Subramaniam, Managing Director, Sundaram MF says, “I think the Omicron version of Covid-19 is a cause of concern for foreign investors. Domestically, even though the cases of omicron are on the rise, people have seen how the Covid-19 has been dealt with in the last two waves and how the economy has recovered, which is giving them the confidence to invest in equities. ,
The benchmark Sensex rose nearly 2 per cent in December and the index has gained nearly 24 per cent in the past one year. Industry executives expect overall inflows into SIPs to remain strong in 2022 as well, but there may be some profit-booking by investors.
The number of SIP accounts increased to 49 million in December from 47.8 million in November. In the calendar year 2021 (CY21), the inflow through SIPs stood at Rs 1.14 trillion and the contribution has been over Rs 10,000 crore every month since September. The assets under management (AUM) for this segment stood at Rs 5.65 trillion at the end of December, as against Rs 5.46 trillion in November.
NS Venkatesh, Chief Executive Officer, Amfi said, “2021 has been a pivotal year, with MFs emerging as the preferred investment destination with consistent record equity inflows through NFOs and ongoing investments in existing schemes. Mutual Funds have witnessed significant growth this year with an increase in inflows from all categories of funds.
However, debt-oriented schemes saw a net outflow of around Rs 49,154.10 crore in December led by shorter duration funds. Sharp net outflows were witnessed across multiple debt categories such as liquid funds, ultra-short-duration funds, corporate bond funds and floater funds. However, overnight and dynamic bond funds saw inflows last month.Passive schemes such as index schemes, exchange-traded funds and overseas investments also collected Rs 18,702.45 crore in December. Overall, the MF industry saw a net outflow of Rs 4,350.03 crore and the average AUM till December stood at Rs 37.91 trillion.
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