Equity, debt funds saw fewer inflows in November MoM, shows AMFI data

The AMFI, or Association of Mutual Funds of India (AMFI), which is a nodal association of mutual funds across India, released its November mutual fund data on Friday, December 8.

The data highlights that funds mobilised in both the equity and debt segments decreased on a month-on-month (MoM) basis. The reason behind lower inflows could be because of apprehensions among investors as regards the market, which has been on a record-breaking spree.

Within the equity funds, small cap funds, followed by thematic and flexicap funds saw the most inflow during the month. The net inflow in the smallcap funds, however, reduced month-on-month from Rs 4495 crore to Rs 3699 crore. Zee Business Research suggests that smallcap and midcap funds are consistently seeing good inflows. Over the last 1 year period, the inflow in the smallcap and midcap funds has been at Rs 39,423 crore and Rs 23,481 crore, it added. 

Further, similar to the previous month, ELSS funds continued to saw lower buying interest, with the net mop-up in the category at Rs 104 crore as against Rs 266 crore in October.

Interestingly, while the inflow receded month-on-month, the industry has logged an increase in folios in the equity fund category, with number of folios recorded at 11,05,10,699 as of November 30, 2023.

G. Pradeepkumar, CEO, Union Asset Management Company  said, The net flow into equity funds continue to be robust on the back of encouraging macro-economic numbers and corporate earnings growth. While there appears to have been some level of profit booking, the SIP numbers have continued to grow and have hit an all time high. This reflects the continued faith of retail investors in the equity markets and in the mutual fund industry. However, we would advise investors to stagger their investments in small and mid cap funds in view of the possibility of short term volatility.”

The debt category saw higher outflow with the net inflow turning negative for the month. In October, the debt segment saw a net inflow to the tune of Rs 42,634 crore, while in the November month, the figure was placed at Rs -4706.75. On the heavy inflow in the category last month, Gurvinder Wasan, CFA, Senior Fund Manager and Credit Analyst - Debt, JM Financial Asset Management said that every quarter end, large outflows are seen from the Institutional segment in the liquid fund segment, which tend to come back at the beginning of the quarter.