Mutual fund data: Equity inflows drop nearly 16% sequentially to Rs 22,633 crore in March, off nearly two-year high

AMFI data March 2024 latest news: Inflows into equity mutual fund schemes saw a decline of 15.8 per cent on a month-on-month basis to Rs 22,633.2 crore in March, data from industry body Association of Mutual Funds in India (AMFI) showed on Wednesday. That marked a significant fall in the inflows from a nearly two-month high in February. 

Equity-oriented MF schemes mobilised funds of Rs 52,721.4 crore in March, down 10.5 per cent sequentially, according to AMFI. 

Here are some key takeaways from the monthly report: 

• Number of new SIP registrations at 42,87,117 
• MF industry net AUM at Rs 53,40,194.6 crore vs Rs 54,54,214.1 crore in February 
• MF folio registrations at record 17,78,56,760 

Investors remain confident about mutual funds as FY24 draws to a close, reflected by the SIP accounts hitting a record high of 8,39,71,299 with 42,87,117 new registrations, said AMFI Chief Executive Venkat Chalasani. 

"Noteworthy is the continuous positive equity inflow for 37 months in a row. Mutual funds witnessed a record asset gain of around Rs 14 lakh crore in FY24, marking a 35 per cent rise, the highest since FY21. These trends highlight investor evolution towards financial literacy and collaborative efforts in promoting intelligent investment practices, reflecting the mutual fund industry's steady growth and lasting significance," Chalasani added. 

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While inflows in largecap funds more than doubled to Rs 2,127.8 crore in March, from Rs 921.1 crore the previous month, they declined 43.7 per cent to Rs 1,017.7 crore in the midcap category, according to the data. 

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March saw some interesting changes in MF flows. The entire debt category was negative across with the exception of long duration funds. Usual balance sheet build up in the year end led to outflows in the liquid ultra-category. Tight liquidity situation led to outflows despite short term yields peaking led to outflows. Quarterly seasonality of tight liquidity coinciding with the year-end led to even more pronounced outflows.

"Equity net flows dipped led by a fall in flows in small and midcap category. The stress test results in the small and midcap space coupled with high valuations could be the reason for flows to ebb here. There is a slight rotation we are seeing where largecap and predominantly largecap funds, like flexi cap or 'large and mid', have benefited in flows at the margin as investors may be moving in here due to relative valuation comfort," said Anand Vardarajan, Business Head-Banking, Institutional Clients, Alternate Products and Product Strategy, Tata Asset Management.

The smallcap category logged outflows to the tune of Rs 94.2 crore in March, as investors continued to avert the segment amid concerns about frothy valuations, as against inflows of Rs 2,922.5 crore in February.

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Equity-linked savings scheme (ELSS) funds attracted inflows of Rs 1,789.1 crore last month, up more than five times from Rs 339.1 crore in February. 

Mutual fund schemes in multicap and flexicap categories registered monthly inflows of Rs 1,827.5 crore and Rs 2,738.1 crore, as against Rs 2,414 crore and Rs 2,613.2 crore in February. 

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Systematic investment plan (SIP) inflows were recorded at Rs 19,270 crore last month.

"The consistent surge in SIP flows, surpassing Rs 19,000 crore for the second consecutive month, signals a promising trajectory... SIP empowers young investors with financial discipline," said Swarup Anand Mohanty, Vice Chairman and CEO, Mirae Asset Investment Managers. 

Debt mutual fund schemes

Debt mutual funds saw outflows to the tune of Rs 1,98,298.9 crore last month in stark contrast to inflows of Rs 63,808.8 crore the previous month, according to the mutual fund industry body. 

"The entire debt category was negative across with the exception of long duration funds. Usual balance sheet build up in the year-end led to outflows in the liquid ultra-category. Tight liquidity situation led to outflows despite short-term yields peaking led to outflows. Quarterly seasonality of tight liquidity coinciding with the year-end led to even more pronounced outflows," added Vardarajan.

Hybrid mutual fund schemes

Hybrid mutual fund inflows stood at Rs 5,583.6 crore in March, a fall of 69.2 per cent compared with the previous month. 

New mutual fund schemes 

March also saw the launch of two open-ended debt schemes, Bandhan Long Duration Fund and Kotak Long Duration Fund, and five equity schemes: 

• Baroda BNP Paribas Innovation Fund
• Canara Robeco Manufacturing Fund
• Edelweiss Technology Fund
• Kotak Technology Fund
• Union Business Cycle Fund