SIPs power equity MFs to highest inflows in 18 months in Dec
Mutual fund managers attributed the inflow in equity funds to the matured investor behaviour who are staying put and using volatility to invest additional money in to these schemes
Despite persistent volatility in the stock market, equity mutual fund schemes managed to register net inflows for the month of December helping to end the year 2016 on a positive note.
Equity mutual funds saw net inflow worth Rs 9,196 crore in December, while equity-linked saving schemes witnessed inflows worth Rs 907 crore. A total net inflow of over Rs 10,000 crore making its way in to the equity funds in December, which was the highest since June 2015.
In June 2015, equity schemes garnered an inflow of Rs 12,273 crore and in November the net inflow stood at Rs 9,079 crore.
Mutual fund managers attributed the inflow in equity funds to the matured investor behaviour who are staying put and using volatility to invest additional money in to these schemes. Fund houses witnessed inflows largely via systematic investment plans or SIPs.
Under systematic investment plan, investments are done at regular intervals over a period of time instead of making a one-time lump-sum investment.
The robust inflow has pushed up equity fund’s assets under management or AUM to Rs 4.7 lakh crore at the end of December, from Rs 4 lakh crore in April-end.
The balanced funds category saw net inflows close to Rs 4,000 crore, however, income funds category registered the highest outflows worth of Rs 33,182 crore last month.