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The last month of 2022 ended on a good note for the MF industry. While the industry saw net inflows of Rs.7300 crore in December, which is thrice the November inflows of Rs.2250 crore, the industry AUM stood at Rs.41 lakh crore despite heavy outflows from liquid funds.
NS Venkatesh, Chief Executive, AMFI said, “The importance of investing in equity markets for the longer term goals is not lost on investors and the same is reflected in the ever-increasing awareness and adoption of SIP as a goal-linked route to create wealth over the long term. This month almost 24 lacs new SIPs were registered, which shows increasing investor belief in the instrument.”
Manish Mehta, Head - Sales, Marketing and Digital Business, Kotak MF added, “Given the market volatility, investors continue to show maturity in their investment behaviour by continuing their SIP investment.”
Overall, the industry AUM reached 40.76 lakh crore in December 2022. Of this retail AUM in equity, hybrid and solution oriented schemes was Rs. 20.89 lakh crore. Here are the other key highlights of December 2022.
Equity funds
Overall, net inflows increased from Rs. 2,250 crore in November to Rs. 7,300 crore in December. This was partly due to six NFOs that mobilised Rs. 1,996 crore last month.
All categories, except sectoral/thematic funds, focused funds and large cap funds reported net inflows. Small cap funds, mid cap funds and large & mid cap funds received the highest inflows of Rs. 2,250 crore, Rs. 1,950 crore and Rs. 1,200 crore, respectively.
Debt funds
As against net inflows of Rs. 3,700 crore in November 2022, debt funds reported net outflows of Rs. 22,000 crore due to large ticket withdrawals from liquid funds.
Liquid funds (Rs. 13,900 crore), floater funds (Rs. 2,250 crore) and medium duration funds (Rs. 1,800 crore) saw the maximum net outflows, in the said order.
Only ultra-short duration funds and long duration funds reported net inflows of Rs. 1,700 crore and Rs. 320 crore, respectively.
Hybrid funds
The category saw net inflows of Rs. 2,250 crore in December 2022. All hybrid categories, except dynamic asset allocation/balanced advantage funds and equity savings funds saw net inflows. Multi asset allocation funds and arbitrage funds saw the highest net inflows of Rs. 1,700 crore and Rs. 900 crore respectively.
Passive funds
Index funds and other ETFs witnessed net inflows of Rs. 6,700 crore and Rs. 8,800 crore respectively. However, gold ETFs reported outflows to the tune of Rs. 270 crore.
SIP
The monthly SIP contribution increased to Rs. 13,600 crore in December, the highest ever monthly gross collection. As a result, the SIP AUM stood at Rs. 6.75 lakh crore.
“SIPs continue to create new milestones with above 13,000 crores of inflows for the third straight month. This highlights the strong domestic flows which has also helped to negate the recent selling by FIIs”, said Akhil Chaturvedi, Chief Business Officer, Motilal Oswal MF.
