BENGALURU, Dec 9 (Reuters) – Inflows into Indian equity mutual funds rose 76% to 22.58 billion Indian rupees ($274.49 million) in November from 93.9 billion rupees in November, even as markets rose to new highs, according to data. Association of Mutual Funds of India (AMFI).
The fall in equity and equity-linked schemes comes on the back of increased foreign fund inflows as stocks rise Read More The NSE Nifty 50 (.NSEI) and S&P BSE Sensex (.BSESN) posted monthly gains of 4.14% and 3.87% in November.
The decline in net inflows is due to mutual fund investors withdrawing money at higher interest rates, AMFI CEO NS Venkatesh said, “We expect retail investors to re-enter the market by March,” when interest rates rise. “It may come to an end.”
Strategic Investment Plans (SIPs)
Contributions to strategic investment plans (SIPs) — where investors pay regular installments into a mutual fund — rose to Rs 133.07 billion in November for the fourth consecutive month. The number of SIP accounts rose to 60.5 million from 59.3 million in October.
Class-wise trends
All segments showed a reduction in flows in November. Comparatively, small-cap funds witnessed inflows of Rs 13.78 billion, while large-cap funds recorded the worst inflows in 22 months.
According to AMFI’s Venkatesh, investors prefer small cap funds over large caps as they see opportunity.
It flows into debt funds
Debt funds saw mixed trends in November. Liquid funds inflows for the second consecutive month.
Credit risk funds saw an outflow in November after witnessing gains in October.
Net flows in November
The mutual fund industry posted a total net income of 132.64 billion rupees, down 5.6 percent from October. Average assets under management rose 2 percent to 40.5 trillion rupiah from 39.5 trillion rupiah in October.
($1 = 82.2620 Indian Rupees)
Reporting by Bharat Rajeswaran in Bengaluru; Editing by Savio Dsouza
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