Investors put brakes on equity mutual funds: Inflows plunge to more than 3-year low; SIPs soar

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Published: December 9, 2019 5:12:05 PM

Equity mutual fund inflows plunged to more than 3 year low in November, even as the benchmark indices scaled new records in the month.

ELSS, tax saver mutual fund, ELSS long term return, mutual fund lock in period, इक्विटी लिंक्ड सेविंग स्कीम, म्यूचुअल फंड, invest in best mutual fund, mutual funds save tax, mutual fund market, top funds for investmentNet inflows into equity and equity-linked schemes slumped 78% over the previous month to Rs 1,311.65 crore in November, data from AMFI revealed.

Equity mutual fund inflows plunged to more than 3 year low in November, even as the benchmark indices Sensex and Nifty scaled new records in the month. Net inflows into equity and equity-linked schemes slumped 78% over the previous month to Rs 1,311.65 crore in November, data from AMFI revealed. This implies a third straight month of decline in mutual fund inflows, and the lowest since June 2016 when equity inflows had fallen to Rs 320 crore. Interestingly, SIP investments continued to be invogue, with SIP investments soaring to all-time highs. The total number of SIP accounts have grown to 2.94 crore. The SIP contribution was Rs 8,272.87 crore, up 27% on-month, while the SIP AUM stood at Rs 3.12 lakh crore in the month.  

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“Goal-based, long-term SIP investments from retail investors continue to grow steadily, with SIP AUM at an all-time high of Rs 3.12 lakh crore. While equity net inflows have come down sharply in November, partly due to investors booking profits, the overall mutual fund industry AUM reached an all-time high of Rs 27 Lakh crore,”  NS Venkatesh, CEO of AMFI told in an interview to Bloomberg Quint.

Much of the outflows in the month can be attributed to fall in inflows into multi-cap funds, as Net inflows into multicap funds dropped to Rs 181.14 crore from Rs 1,311 crore last month. Sectoral and contra funds registered outflows of Rs 636.55 crore and Rs 955 crore, respectively. Large and midcap funds saw net outflows of Rs 252 crore during the month. The total AUM (assets under management) of mutual funds in India rose to fresh record high of hitting Rs 27 lakh crore in November from Rs 26.32 lakh crore last month, up Rs 54,419 crore. The total equity assets rose 4.2 on-month to Rs 7.56 lakh crore as at the end of November.

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