Despite weakness in financial markets, the Indian mutual fund industry has started the new financial year well, seeing net inflows. 72,847 crore during the month of April, according to data released by the Association of Mutual Funds in India (Amfi) on Tuesday.
However, contribution to Monthly Systematic Investment Plan (SIP) 11,863.09 crore as of April 2022 464.82 crore less than March’s contribution 12,327.91 crore, which was an all-time high.
The number of SIP accounts stood at 5.39 crore in April, surpassing the March 2022 high of 5.27 crore. 11.29 lakh SIP accounts were added during the month.
During the month, the Equity category received a net inflow of 15,890 crores. Although it was less than the net inflow of 28,464 crore in March, this is a significant amount in absolute terms.
Overall, but 38.03 lakh crore, net assets under management (AUM) of the Indian mutual fund industry as on April 30, registering a 17 per cent annual growth. The AUM of the mutual fund industry remained at an all-time high.
Amfi data also shows that the number of mutual fund folios grew by 33% to 13.13 crore as compared to last year’s 9.86 crore. The number of folios grew by 1% sequentially from 12.95 crore as on 31 March 2022.
In the debt or income category, liquid funds, money market funds and ultra-short duration funds emerged as the top three in net flows. The equity category witnessed significant inflows in large & mid-cap, small-cap, flexi-cap, mid-cap and multi-cap.
In the hybrid category, arbitrage and dynamic asset allocation schemes generated significant positive inflows.
“Despite volatility in markets and fears surrounding macros globally and locally, it is a good trend that equities continue to see positive inflows. Though lower than last month, which may be due to NFO allocation, SIP inflows are strong which is also very positive. Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC said, “It will be interesting to see the ongoing investment trend, as the intensity of volatility is very high, I expect the positive trend to continue further.
Till April, there was new influx for debt-oriented schemes 54,756.60 crore and net inflow to growth or equity oriented schemes stood at Rs 15,890.38 crore.
During April 2022, three different NFOs were launched under the open-ended scheme category, which 3,240 crore.