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The MF AUM has crossed Rs.40 lakh crore for the time to reach AUM of Rs.40.49 lakh crore in November 2022.
Further, the SIP inflows and total folio count also remained at record level for the second month in a row. While the SIP inflows were at Rs.13,306 crore, the highest so far, the total folio count as well as the retail folio counts reached an all-time high in November 2022. They stood at 13.98 crore and 11.18 crore, respectively.
NS Venkatesh, CEO, AMFI said, “Our investor education campaigns by AMFI have constantly motivated people to invest a part of their savings regularly and participate in capital markets through the mutual fund route."
Let us look at key highlights of the month gone by:
Equity funds
Equity funds received net inflows of Rs. 2,258 crore as against Rs. 9,390 crore in October 2022.
Akhil Chaturvedi, Chief Business Officer, Motilal Oswal MF said, “Instead of reading too much into month-on-month dip in net equity inflows, the heartening thing to note is that net equity inflow has remained relatively resilient and investors are willing to look past short-term trends and instead focus on long term fundamentals.”
Sectoral/thematic funds, small cap funds and mid cap funds garnered the highest net inflows of Rs. 1,380 crore, Rs. 1,378 crore and Rs. 1,176 crore respectively. The inflows are due to HDFC Business Cycle NFO which mobilised Rs. 2,336 crore.
Debt funds
As against negative inflows in October 2022, debt funds recorded positive flows of Rs. 3,669 crore.
This was largely due to net inflows of Rs. 34,276 crore in liquid funds. Money market funds and corporate bond funds recorded the next highest inflows of Rs. 4,942 crore and Rs. 3,466 crore.
Debt fund categories like overnight funds (Rs. 31,928 crore), ultra-short duration funds (Rs. 2,882 crore) and short duration funds (Rs. 1,914 crore) saw the highest outflow.
Hybrid funds
All fund categories except multi asset allocation funds saw outflows. Arbitrage funds had the highest outflows of Rs. 4,075 crore.
Overall, the hybrid schemes saw outflows of Rs. 6,477 crore.
Passives
Index funds received net inflows of Rs. 8,602 crore, which was partly due to the 11 funds launched in November 2022. Collectively, they mobilised Rs. 980 crore.
While gold ETFs saw net outflows of Rs. 195 crore, other ETFs recorded net inflows of Rs. 1,967 crore. The industry launched 3 other ETFs and mobilised Rs. 67 crore in the last month.
AMFI’s view on these trends
NS Venkatesh said, “Market continues to react to global headwinds. Rate hikes will continue to impact global markets but not for long, irrespective of that mutual fund industry has performed well. There have been outflows from the retail schemes as people are encashing profits, the reason being increased consumption, owing to the festive season. Retail investors have faith in the MF Industry growth, therefore they will re-enter the market quickly. We have seen encouraging growth in many schemes, especially Index schemes led by equity schemes.”
He added, “We believe the upcoming budget will bring cheer to the market which will clear the pathway to more inflows in various schemes, however, debt schemes will stabilise once the RBI rate hikes stabilise. Mutual fund investors have shown resilience and continue to invest in SIPs, with consistent contribution month-on-month.”
