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Equity Mutual Fund Inflows Drop 76% To Lowest In 21 Months In November: AMFI Data

Net investment into equity and equity-linked schemes plunged about 76% month-on-month in November.

<div class="paragraphs"><p>A stack of money coin with trading graph. (Photo:&nbsp;Freepik)</p></div>
A stack of money coin with trading graph. (Photo: Freepik)

Inflows into equity mutual funds tumbled to the lowest level in 21 months in November, dragged down by outflows from large-cap funds.

Net investment into equity and equity-linked schemes plunged about 76% over the previous month to Rs 2,258.35 crore in November, according to data released by the Association of Mutual Funds in India. That's the lowest since the category last saw outflows in February 2021, and the second straight month of decline.

The decline came even as benchmarks, the S&P BSE Sensex and the NSE Nifty 50, rallied 4.62% and 4.92%, respectively, last month.

Category-Wise Trends

Multi-, mid- and small-cap funds recorded inflows in the month of November.

Large-cap funds saw an outflow of Rs 1,038.8 crore as against an inflow of Rs 173.6 crore in October.

AMFI started releasing granular data in April 2019.

SIPs Continue Uptick

The number of SIP accounts reached 6.04 crore compared with 5.93 crore in October. SIP contribution grew to Rs 13,306.5 crore in November against Rs 13,040.6 crore in October.

"SIP numbers are showing a very healthy trend and we believe that it will continue to grow because the interest of the retail investors in the markets is actually going up day by day, and the markets are also doing reasonably well," NS Venkatesh, chief executive officer at AMFI, said.

Debt Funds 

Inflows into liquid funds, used by companies to park short-term cash, gained for the second straight month to Rs 34,276.4 crore.

Credit-risk funds have now seen outflows for 12 straight months including November.

Net Flows 

The mutual fund industry, across debt and equity, recorded a total net inflow of Rs 13,263.6 crore in November versus an inflow of Rs 14,047 crore in October.

Money market funds saw inflows of Rs 4,942.3 crore in November, compared with outflows worth Rs 1,996.3 crore in October. 

The average assets under management stood at Rs 40.49 lakh crore in November versus Rs 39.53 lakh crore in October. Net AUM rose to Rs 40.37 lakh crore from Rs 39.50 lakh crore.