Equity mutual funds attracted a net sum of Rs 28,463 crore in March, making it the 13th consecutive monthly net inflow, amid a volatile stock market environment and continued FPIs (foreign portfolio investors) selling.
In comparison, equity mutual funds saw a net inflow of Rs 19,705 crore in February, Rs 14,888 crore in January and Rs 25,077 crore in December 2021, data from the Association of Mutual Funds in India (AMFI) showed on Friday.
Equity schemes have been witnessing net inflow since March 2021, highlighting the positive sentiment among investors.
Prior to this, such schemes had consistently witnessed outflows for eight months from July 2020 to February 2021 losing Rs 46,791 crore.
Within the equity segment, all categories saw net inflows.
Multi-cap fund category saw the highest net inflow of Rs 9,694 crore, followed by large & mid-cap fund and large cap fund that witnessed over Rs 3,000 crore net infusion each.
However, the debt segment saw a net outflow of Rs 1.15 lakh crore last month, after witnessing a net inflow of Rs 8,274 crore in February.
Overall, the mutual fund industry registered a net outflow of Rs 69,883 crore in March, as compared to a net infusion of Rs 31,533 crore in the preceding month.
The outflow pulled down the average assets under management (AUM) of the industry to Rs 37.7 lakh crore at the end of March, from Rs 38.56 lakh crore at February-end.
Commenting on the March 2022 Mutual Fund data, Mr N S Venkatesh, Chief Executive, AMFI said: “The deteriorating geo-political situation with Russia-Ukraine war, elevated hawkish US Fed stance, or even the rising inflation owing to spurt in fuel prices has not deterred continued investor confidence in the India growth story. Flows into retail schemes in CY 2022, continue to show month on month increase, led by rising SIP contribution, which for March 2022 are at an all-time high at INR 12,328 crores, and with economy opening up due to tapering Covid prevalence in the country.”
"In the last 12 months as on March 31, 2022, the Mutual Fund industry has added 1.09 crore unique investors which is also reflective of investor confidence in the mutual asset class, Venkatesh said.
From a negative INR 24,906 crore flows in March 2020, two years back, when Covid-hit India enforced lockdown bringing economy to a grinding halt, to a positive INR 24,789 crores flows in March 2022, when economy has completely opened up, mutual fund investors have only consolidated on their steadily rising returns driven by disciplined SIP-driven savings approach, he said.
On the fixed income schemes, quarter-end advance tax collections has led to flows turning negative and add to that the uncertainty in RBI stance on interest rates has turned investors cautious.
(With PTI inputs )
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