Equity Mutual Funds inflow surges to Rs 25,000-cr in December on strong SIP book

Flows into equity mutual funds more than doubled to Rs 25,000 crore in December on strong Systematic Investment Plan (SIP) numbers and robust inflow into multi-cap fund category.This was also the 10th consecutive monthly net inflow, data with Association of Mutual Funds in India (Amfi) showed on Monday.

In comparison, equity mutual funds logged net inflow to the tune of Rs 11,615 crore in November, Rs 5,215 crore in October, Rs 8,677 crore in September and Rs 8,666 crore in August.

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The month of December saw a net inflow to the tune of Rs 25,077 crore, which was the highest monthly net infusion since July, when equity-oriented mutual funds witnessed a net inflow of Rs 25,002 crore.

Equity schemes have been witnessing net inflow since March 2021 and the segment has received a net inflow of Rs 1.1 lakh crore during this period highlighting the positive sentiments among investors.

Prior to this, such schemes had consistently witnessed outflows for eight months from July 2020 to February 2021 losing Rs 46,791 crore.

Overall, mutual fund industry registered a net outflow of Rs 4,350 crore during the period under review after witnessing net investment of Rs 46,165 crore in November.

The asset under management (AUM) of the industry was at Rs 37.72 lakh crore at December-end as against Rs 37.34 lakh crore at November-end.

The monthly SIP (systematic investment plan) contribution rose to Rs 11,305 crore last month from Rs 11,005 crore in November. Also, the number of SIP accounts grew to 4.91 crore from 4.78 crore. "SIP has been the favourite medium of consistent investing and disciplined mode of savings by the common man. This is evident from the number of accounts rising,"Amfi Chief Executive N S Venkatesh said.

Through regular financial literacy, retail investors are understanding the nuances of managing market volatility and risk adjustment through SIP.

Overall 2021 ended in rise in disciplined investing through rise in number of SIP investments, he added.

Within the equity segment, all categories saw net inflows. While multi-cap fund category saw highest net inflow to the tune of Rs 10,516 crore during the period under review compared to Rs 347 crore in November.

Moreover, 20 different new fund offerings (NFOs) were launched in December. In addition, gold exchange traded funds (ETFs) attracted Rs 313 crore during the period under review, lower than Rs 682 crore net inflow seen in November.

The debt segment saw net outflow of Rs 49,154 crore last month as compared to net inflow of Rs 14,893 crore in November.