Equity MFs see ninth straight month of inflows in Nov, at over Rs 11,000 cr

This, even as benchmark indices saw their biggest correction in 21 months

Investors continued to pour money into equity mutual funds (MFs) in November even as the benchmark indices saw their biggest correction in 21 months.

Equity-oriented schemes saw net inflows of Rs 11,614.73 crore during their month. This was the ninth consecutive month of inflows, with inflows since March totaling 78,765 crore. However, in recent months’ bulk of the net equity inflows have been on account of systematic investment plans (SIPs), a signal that lump sum investments have seen sharp moderation.

In November, the SIP tally stood at highest-ever Rs 11,005 crore. The number of MF SIP accounts rose to 47.8 million.

All the 11 equity scheme categories saw net inflows, with flexicap receiving highest net inflows of Rs 2,660 crore. Other categories such as focused, thematic, largecap, large & midcap and midcap funds saw net inflows of over Rs 1,000 crore each in November.

In November, the benchmark Sensex and the Nifty dropped nearly 4 per cent each—their worst showing since March 2020.

D P Singh, chief business officer at SBI MF said, “The numbers show that investors are not running away even if markets are volatile or valuations are little expensive. Retail investors have continued to show faith in equities and we hope this trend continues going forward.”

So far this financial year, inflows through the SIP route have been over Rs 77,977 crore. For three consecutive months, the SIP inflow tally has been more than Rs 10,000 crore.

NS Venkatesh, Chief Executive, of industry body Amfi said despite rising uncertainty and extreme volatility amid concerns around the new variant, retail investors continued to have a disciplined investing approach through the SIP mode.

SIP is an investing technique wherein the investor commits a fixed sum every month as opposed to investing a large sum at one go. Sustained inflows through this route have provided the domestic mutual fund (MF) industry a solid foundation for growth.

Debt-oriented schemes saw net outflows of around Rs 14,893.08 crore in November led by liquid funds. Several of the debt categories like overnight funds, low duration funds, corporate bond fund and floater fund among others witnessed sharp net outflows.  However, liquid funds saw net inflows of Rs 53,251.28 crore last month.

Overall, the MF industry saw net inflows of Rs 46,165.16 crore in November. The average assets under management for the month stood at Rs 38.45 trillion.