Why equity fund inflows continue to stay strong

By Abhinav Kaul | December 11, 2024

Why Equity Fund Inflows Continue to Stay Strong

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Equity funds saw total net inflows of Rs 3.53 lakh crore till November this year. In comparison, inflows in 2023 and 2022 stood at Rs 1.62 lakh crore and Rs 1.61 lakh crore, respectively.

Super Bullish on Equity

Inflows into the Sectoral/Thematic category were miles ahead of other funds at Rs 1.40 lakh crore. Fueling the inflows were NFOs. Fund houses mopped up Rs 67,772 crore via 40 such new funds this year.

A Clear Winner

This year, small-cap funds saw net inflows of Rs 29,500 crore against  Rs 17,400 crore investments into  large-cap funds, reflecting sustained retail investor confidence in  small-cap stocks.

David Versus Goliath

Investments via SIPs, typically used by retail investors, have cumulatively topped the Rs 2.40 lakh crore mark in 2024. Last year, total SIP inflows  stood at Rs 1.83 lakh crore.

Sustained SIPs

Multi-cap funds, that invest across large-cap, mid-cap and small-cap stocks, saw the second-highest  net inflows across equity fund categories at Rs 37,650 crore  in 2024.

Diversified Bets

The equity fund category saw  56 new launches till November, collecting a total of Rs 79,700 crore. Notably, 85% of this sum was mopped up by new Sectoral/Thematic funds.

New Kids on The Block

Focused funds, which have a small concentrated portfolio of 20-25 stocks, have seen Rs 1,440 crore net outflows in 2024, showing investors’ focus on diversified fund strategies.

Out of Favour

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