Inflows into equity MF schemes triple to Rs 7,280 crore in December

Money raised through new fund offers (NFOs) also contributed to inflows into equity schemes. Mutual fund houses boomed 1,996 crore through six equity NFOs launched in December.

According to NS Venkatesh, chief executive of Amfi, “expectations of a good budget, and the Indian growth story being intact,” are factors that will make investors continue to participate in Indian equities.

Monthly SIP (systematic investment plan) contribution has also increased for the fifth month in a row. SIP contribution up 2% sequentially 13,573 crore in December. Contribution increased by 20% as compared to December 2021. The number of SIP accounts also grew by nearly 25% year-on-year to 6.12 crore in December.

Net Inflow Worth seen in Equity Funds Small Cap, Mid Cap and Large and Mid Cap Funds 2,245 crores, 1,962 crore and 1,190 crore respectively. With small-cap stock valuations right, investors continue to grab the opportunity by investing in such funds.

On the other hand, debt mutual funds (open and close-ended) saw net outflows 20,732 crore in December 2022, as opposed to There was a net inflow of Rs 6,943 crore in November. This was largely led by a net outflow of 13,852 crore from liquid funds last month.

Venkatesh pointed out that this was due to companies withdrawing money from liquid funds to pay advance tax, and banks transferring their treasury money from such funds to the Reserve Bank of India (under reverse repo) at quarter-end. Had done it. In fact, among open-ended debt MFs, all categories except ultra-short duration funds and long duration funds saw net outflows in December. That said, 12 new FMPs (fixed maturity plans) launched in December earned net inflows 1,532 crores. FMPs are defined-maturity debt schemes that invest in debt instruments maturing in line with the scheme tenure.

In all, mutual fund houses launched 36 new mutual fund schemes including equity, debt and hybrid in December. 8,486 crores.