SIP inflows hit record highs; equity MF flows at Rs 28,500 crore in March: Amfi

NEW DELHI: As the market started recovering in March, following a crash in the previous month due to the outbreak of war in Europe, investors doubled down on their investments in equity mutual funds.

Amfi data released for the month on Friday said investors poured in a net Rs 28,463.4 crore in equity-oriented funds, compared to Rs 19,705.27 crore in February. The sharp jump is mostly because of SBI Multicap Fund’s new fund offer (NFO) during the month that garnered Rs 8,170 crore. Largecap and Large and Midcap Fund categories were among the biggest beneficiary of the inflows, getting more than Rs 3,000 crore each.

The debt segment saw a net outflow of Rs 1,14,823.77 crore, which is consistent with the quarter ending month. Corporates withdraw their deposits during such months to pay their obligations. Liquid fund, overnight fund and corporate bond fund categories were among those that saw most of the outflow.

Thanks to consistent investments made by retail investors, domestic institutional investors, which mostly comprise mutual fund managers, bought stocks worth Rs 39,677 crore during the month, against buying of Rs 42,084.07 crore in February. This is at the time FIIs have been withdrawing money in heaps from Indian markets.

N Venkatesh, chief executive of Amfi, said retail investors have reposed their faith in the mutual fund as an investment vehicle. He added that he doesn’t see any tapering of inflows from them any time soon.

SIP inflows in March rose to Rs 12,327.91 crore, the highest ever, from Rs 11,447.70 crore in the previous month. Total number of SIP folios stood at 5.27 crores compared to 5.17 crores in February. The assets under management (AUM) from SIPs rose to Rs 5.76 lakh crore from Rs 5.49 lakh crore.

“March has seen a jump in gross flows at Rs 46,000 crore and with lower redemptions bumping net sales higher than the average of last few months at Rs 28,000 crore. This perhaps is due to the continued interest in retail and HNI investors to make use of market opportunities and enter in corrections for better valuations,” said Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC.

“On-Going Russia-Ukraine crisis has kept the market volatile, giving advantage to investors in making higher allocations or re-balance their existing allocations. All said, risk-appetite for equities is certainly on the rise which is very healthy for markets and investors for long term wealth creation.”

During January, Sensex climbed 4.13 per cent while BSE Midcap advanced 3.22 per cent and BSE Smallcap index 5.83 per cent.

Total AUM of the mutual fund industry decreased by Rs 69,883.27 crore to Rs 37.56 lakh crore at the end of March. A part of the gains also includes mark-to-market losses or gains for the industry.