Net inflows into equity funds for the financial year 2016-17 stood at Rs 94,421 crore, the highest in last ten years. Continuous participation from retail investors through systematic investment plans (SIPs), coupled with positive returns from equity funds and success of investors awareness programmes, can be attributed to such strong flows into equity funds, says market participants.
Industry participants also say under-performance of gold and real estate has also helped equity mutual funds in the past few years. Milind Barve, MD at HDFC Asset Management Company (AMC), said: “I think we are clearly seeing shift from physical assets to financial assets and focus on retail business from the industry has also helped. Another significant factor which has worked well for the industry is of SIPs, where mutual funds are seeing monthly flows of around Rs 4,000 crore. All this factors along with positive performance of equity schemes has also encouraged industry.”
According to the data from the Association of Mutual Funds in India (Amfi), mutual fund SIPs accounts as on February stood at 1.31 crore and the total amount collected through SIP during February 2017 was Rs 4,050 crore. In the last one year, various categories of schemes such as large-cap and mid-cap gave returns of 24% and 33%, respectively, on an average.
In 2015-16, equity funds (which include equity, equity-linked saving schemes and other ETFs) had seen net inflows of Rs 82,748 crore. In 2014-15, they had witnessed net inflows of Rs 73,280 core, suggests the data from Amfi.
You may also like to watch:
A Balasubramanian, CEO of Birla Sun Life AMC, said, “In general, we have seen confidence from retail investors in the past few years. Even post demonetization, flows have continued into the mutual fund industry. Its also heartening to see that flows from top 15 cities (T-15) and beyond top 15 cities (B-15) have continued to remain strong.”
Data from Amfi also suggest that assets from B15 locations have increased from Rs 2.13 lakh crore in February 2016 to RS 3.07 lakh crore in February 2017.
The rate of growth in assets for B15 locations was 44% (26% for the industry as a whole during the same period). Total assets under management of the industry at the end of March 2017 stood at Rs 17.54 lakh crore.