Equity mutual funds saw record inflows of Rs 28,000 crore in March

 

 

Mutual Funds (MFs) saw record inflows in March buoyed by strong stock markets and new fund offerings (NFOs). Data from the Mutual Funds Association of India (Amfi) shows that equity funds saw net inflows of Rs 28,463.49 crore, with the majority of the inflows coming into multi-cap funds.

In March, the S&P BSE Sensex Index rose 4 percent, while the S&P BSE Midcap Index and the S&P BSE Smallcap Index rose 3.22 percent and 5.83 percent, respectively.

March saw all eleven categories of equity funds see net inflows, with multiple companies seeing the highest inflows at Rs 9,694.56 crore, followed by large and mid-sized funds at Rs 3,164.67 crore, data from Amfi shows. The sudden rise in inflows into the multi-cap funds was largely due to the NFO of the SBI Multicap fund which brought in Rs 8,170 crore.

Market participants say that despite the volatility in the markets, investors have continued to invest through regular investment plans (SIPs). In the current fiscal year, equity funds have seen net inflows of Rs.1.64 trillion.

However, debt funds saw net outflows of 1.14 trillion rupees led by high redemptions of liquid funds, overnight funds and corporate bond funds. Typically, at the end of each quarter, there are high debt payback schemes, in which organizations such as banks and corporations redeem their investments to pay advance quarterly taxes.

Overall, the microfinance industry saw net outflows of Rs 69,883 crore in March and the industry averaged assets under management (AAUM) of Rs 37.70 crore.

 

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