Equity MF schemes see a rise in inflows in March

buy on the decline

“Geopolitical tensions due to the raging war between Russia and Ukraine and concerns over rising crude prices led to a sharp correction in the market in late February and early March. This provided investors with a good entry point into equities,” Himanshu Srivastava, Associate Director – Manager Research, Morningstar India says

In continuation to the past, collections from SIPs (Systematic Investment Plans) recorded another month of growth. SIP contribution increased to Rs. Up nearly 8% from Rs 12,328 crore in March 2022. 11,438 crore in February 2022. Given the market volatility induced by the Russia Ukraine conflict and tighter monetary policy by the US Fed, investors are taking SIPs to invest regularly without giving time to the market. The monthly SIP collections have been steadily increasing month-on-month from April 2021 onwards, except for the fall in February 2022.

All equity-oriented schemes received net inflows in March 2022, including multi-cap fund category up to Rs. was the largest recipient with a net inflow of Rs. 9,695 crores. As pointed out by Srivastava, the launch of SBI Multi Cap Fund, which has raised Rs. 8170 core, helped. The next two big beneficiaries of net inflows were large and mid cap funds and large cap funds.

However, the situation was quite the opposite for debt funds, which saw a net outflow of Rs. 1.15 lakh crore. While the outflow was led by liquid funds, it extended to debt fund categories across the board. This was prompted by companies withdrawing money for advance tax payments at the end of the financial year as in the past.

what will happen next

Net inflows into equity mutual fund schemes have been positive since March 2021, which is the thirteenth consecutive month of such inflows. The Securities and Exchange Board of India recently asked mutual fund AMCs not to launch any new fund offers until the pooling of mutual fund money and units is stopped, it would be interesting to see if equity The pace of inflow into the plans slows down. According to NS Venkatesh, Chief Executive, Association of Mutual Funds in India, with the economy and markets performing well, investors will continue to invest in existing schemes and hence do not expect any reduction in inflows.