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The festival month ended on a good note for the MF industry with assets reaching an all-time high at Rs.49.04 lakh crore.
In addition, the industry saw total new inflows of Rs.15,500 in equity funds and the monthly gross SIP inflows crossed Rs.17,000 crore.
Let us look at some key highlights of the month gone by.
Equity funds saw net inflows but with a decline
Overall, the MF industry recorded a dip in their net equity inflows to Rs.15,536 crore in November 2023. In October, the industry recorded net equity inflows of Rs.20,000 crore.
Though all equity fund categories reported positive net inflows in November, most fund categories saw decline in net inflows compared to October.
Small cap funds continue to attract net inflows of Rs.3700 crore. Mid cap funds and large and mid cap funds followed small cap funds with net inflows of Rs.2700 crore and Rs.1900 crore.
Majority of debt funds saw net outflows
Debt funds witnessed net outflows of Rs.4,707 crore in November 2023. This was due to major outflows from ultra short duration funds (Rs. 1,866 crore) and corporate bond funds (Rs.1,578 crore).
Majority of debt categories recorded net outflows except money market funds (Rs.865 crore), floater funds (Rs.648 crore), banking and PSU funds (Rs.305 crore), gilt funds (Rs.92 crore) and long duration funds (Rs.87 crore).
Hybrid Funds inflows increase
Hybrid funds received total net inflows of Rs.13,538 crore.
Among hybrid funds, arbitrage funds received the highest inflows of Rs.9,404 crore, followed by multi asset allocation funds with inflows of Rs.2,589 crore. All the other fund categories also witnessed net inflows in November 2023.
Passives inflows show decline
Index funds and gold ETFs saw net inflows in November. Index funds and gold ETFs received net inflows of Rs.1,353 crore and Rs.333 crore, respectively. Other ETFs, which includes both equity and debt ETFs also reported net inflows of Rs.834 crore.
Other key insights
- Total MF Folios reached 16 crore in November 2023
- Retail investors held 13 crore MF folios
- Retail AUM now stands at Rs.27 lakh crore
- Industry saw 14 NFOs, which raised a total of Rs 2600 crore
- The SIP AUM stood at Rs 9 lakh crore. Also, the number of SIP accounts was 7.4 crore
Experts Views
NS Venkatesh, CEO, AMFI, said, “As we approach the end of the year, it’s time to celebrate the positive growth and success of the MF Industry. The AUM has been increasing steadily, reflecting the growing trust and confidence of investors. We believe this trend will continue through December and the numbers will continue to remain positive. The SIP contribution stood highest till date. We reiterate that investors should stay focused on goal-based investing through SIPs.”
Manish Mehta Head, Sales, Marketing & Digital Business, Kotak MF said, “Diwali festivities and bank holidays probably affected equity net flows in November. Flows continued in multi-asset allocation category schemes where timing is left to the underlying schemes. SIPs continue to attract new investors with increasing awareness of the benefits of SIPs and mutual funds.”
G. Pradeepkumar, CEO, Union MF said, “The net flow into equity funds continue to be robust on the back of encouraging macro-economic numbers and corporate earnings growth. While there appears to have been some level of profit booking, the SIP numbers have continued to grow and have hit an all-time high. This reflects the continued faith of retail investors in the equity markets and the mutual fund industry. However, we would advise investors to stagger their investments in small and mid-cap funds in view of the possibility of short-term volatility.”
