Mutual fund investors have withdrawn over Rs 10,000 crore from their Strategic Investment Plan (SIP) accounts to cash in on the market rally in November. It was the highest payout since at least April 2021, when the industry began disclosing net SIP revenue data.
“Investors felt that the November highs were a good point to exit with profits. Dealers try to discourage investors from exiting the market, but not all investors listen,” said an established mutual fund dealer.
Fresh SIP investments remained undisturbed. Investors systematically poured in a record sum of Rs 13,300 crore in November.
As a result, net SIP inflows dipped to a meager Rs 3,260 crore, the lowest since October 2021, data from the Mutual Fund Association of India showed.
Higher redemptions in November brought down net investments in equity funds to Rs 2,260 crore. Net revenues were dragged down by an increase in redemptions. Investors withdrew Rs 26,030 crore from active equity schemes, up 60 percent from October and the highest since September 2021.
The net returns in the above two equity schemes—volatile and large-cap—turned negative in November. While investors withdrew Rs 1,040 crore from large schemes, flexicap funds had inflows of Rs 860 crore.