The debt segment saw a net inflow of Rs 69,883 crore in April after witnessing a net outflow of Rs 1.5 lakh crore in the preceding month. Gold exchange traded funds (ETFs) experienced a net inflow of Rs 1,100 crore in the month under review.With stock markets showing huge volatility and foreign portfolio investors (FPIs) in a sell-off mode, equity mutual funds (MFs) witnessed a 44 per cent decline in inflows at Rs 15,890 crore in April as against a record net inflow of Rs 28,463 crore seen in the preceding month, data from the Association of Mutual Funds in India (Amfi) showed on Tuesday.
According to the Amfi, monthly SIP (systematic investment plan) contribution dropped to Rs 11,863 crore in April compared to Rs 12,328 crore in March. However, the number of SIP accounts hit an all-time high in April at 5.39 crore as 11.29 lakh new accounts were added in the month.
The debt segment saw a net inflow of Rs 69,883 crore in April after witnessing a net outflow of Rs 1.5 lakh crore in the preceding month. Gold exchange traded funds (ETFs) experienced a net inflow of Rs 1,100 crore in the month under review. Overall, the MF industry registered a net inflow of Rs 72,846 crore last month as compared to a net withdrawal of Rs 69,883 crore in March.
“It has been a good start to the new fiscal (FY23) with net flows for overall mutual fund schemes in the positive territory and continued positive equity flows for consecutive 12 months. Despite market volatility in April 2022, retail investor trust on the mutual fund asset class continues to be strong,” N S Venkatesh, Chief Executive, AMFI said.
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At Rs 18,88,513 crore, as on April 30, 2022, the net asset under management (AUM) of retail equity schemes (equity, hybrid and solutions oriented) stood at an all-time high, rising 36 per cent. “Going forward, we see mutual fund investors continue with their SIP mode of investments on the equity side, and reallocate their savings in debt funds more towards shorter duration schemes owing to the recent hike in rates by the RBI,” Venkatesh said.
Sustained inflow recorded
Arun Kumar, head of research, FundsIndia, said, “Inflows into equity mutual funds have continued to be strong, predominantly driven by SIPs. This trend is in stark contrast with FPIs who have been large sellers in recent months. Overall, while the domestic inflow trend remains positive, there has been an increase in volatility in equity markets across the world and we need to monitor the impact on investor sentiment and behaviour in the near term.”
“The monthly SIP contribution remains high from an absolute point and also came a little lower than last month which was at an all-time high,” Kumar said. Indian capital markets have witnessed FPI outflow of $5.8 billion in the financial year so far. “However, investors continued to repose faith in the MF industry by pumping money into equity schemes. MFs were major buyers in the stock market in the last six months and acted as contrarians when compared to FPIs,” said an analyst.
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