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Equity mutual fund inflows at Rs 15,890 crore in April, SIP contribution dips

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According to the data, all 11 categories in the equity funds witnessed positive flows during the month. Sectoral/thematic funds saw net inflows to the tune of Rs 3,843.51 crore, the highest among all other categories of equity funds.

Net inflows into equity-linked schemes declined 44% month-on-month to Rs 15,890.38 crore in April against Rs 28,463 crore in March, amid uncertainty in the equity markets and NFO (new fund offer) allotment.

However, net inflows in the overall mutual fund industry stood at Rs 72,846.79 crore. Despite volatility in April, retail investors’ trust in mutual fund asset class continued to remain strong, as reflected in the growth in the assets under management (AUM), Association of Mutual Funds in India (Amfi) said on Tuesday.

According to the data, all 11 categories in the equity funds witnessed positive flows during the month. Sectoral/thematic funds saw net inflows to the tune of Rs 3,843.51 crore, the highest among all other categories of equity funds.

“Despite volatility in markets and fear around macros, both globally and locally, it is good trend to see continuous positive flows in equities. Though lower than last month, which may be due to NFO allotment, SIP flows are holding strong which is also very positive. It will be interesting to see ongoing investment trends given the intensity of volatility being very high, I do expect positive trend to continue going forward though,” said Akhil Chaturvedi, CBO, Motilal Oswal AMC.

The monthly SIP (systematic investment plan) contribution, too, witnessed a decline in April at Rs 11,863.09 crore against Rs 12,327.9 crore in the previous month. However, the number of SIP accounts stood at an all-time high in April at 53.9 million against the previous high of 52.7 million scaled in March this year.

Among debt schemes, amid the interest rate hike cycle, short duration funds like overnight funds and ultra-short duration funds witnessed positive inflows during the month. Overall, inflows into debt schemes stood at Rs 54,756.60 crore against outflows of Rs 1.14 lakh crore reported in the previous month.

NS Venkatesh, chief executive, Amfi, said, “Reallocation in debt funds will happen towards short duration schemes owing to recent hikes in rates by RBI, whereas medium to long duration funds will be avoided until the interest rate cycle ends, typically for a couple of more policy meets.”

During the month, three NFOs, launched under open-ended schemes category, mobilised Rs 3,240 crore. Overall, as of April 30, 2022, the net AUMs for the industry witnessed a 17% year-on-year growth, as it stood at Rs 38.03 lakh crore. Average AUMs jumped 20% year-on-year at Rs 38.88 lakh crore, an all-time high.

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