Despite global geopolitical tensions caused by the Ukraine crisis, investors have maintained confidence in the markets, with equity-oriented mutual fund schemes drawing net inflows. 28,252 crore in both open and closed-ended schemes in March, a rise of 44% over the previous month, showed Association of Mutual Funds in India (AMFI) data released on Friday.
“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. Himanshu Srivastava, Associate Director-Manager Research, Morningstar India said, ‘This has given investors good entry into equities.’
In continuation of the past, collections from Systematic Investment Plans or SIPs recorded another month of growth. SIP contribution increased 12,328 crore in March, an increase of about 8% 11,438 crore in February.
Given the heightened market volatility due to Russia-Ukraine conflict and tighter monetary policy by the US Fed, investors are opting for SIPs to invest regularly without giving time to the market. Except for the fall in this February, monthly SIP collections have steadily increased on a sequential basis since April 2021.
All equity-oriented schemes received net inflows in March 2022, with the multi-cap fund category being the largest recipient with net inflows. 8,170 crores. This was helped by the launch of SBI Multi Cap Fund, which raised According to Srivastava, 8,170 crores. 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 net outflows 1.15 trillion in March. While this was largely led by liquid funds, it expanded 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.
Net inflows into equity MF schemes have been positive since March 2021, maintaining the positive trend for the 13th consecutive month.
The Securities and Exchange Board of India recently asked mutual fund asset management companies to refrain from launching any new fund offers until the pooling of mutual fund money and units has stopped, it will be interesting to see Whether the move of the market regulator slows down. Investing in equity schemes.
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 thus do not expect any reduction in inflows.
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