Compared to March 2020, equity mutual funds net inflows declined by 47 per cent, reveals data released by Association of Mutual Funds in India (AMFI). The net inflows into equity schemes of mutual funds stood at Rs 6,212.96 crore in April as compared to Rs 11,722.74 crore in March as investors turned cautious on concerns over the pandemic. However, when compared to Year-on-Year (Y-o-Y) growth, the same equity mutual funds net inflows were up by 34 per cent growth largely in large and multi cap schemes. “Except for Dividend Yield Fund category, all other equity-oriented mutual fund categories registered net inflows during the month of March. The segment witnessed a net inflow of Rs 6,213 crore, comparatively lower than the net Inflow of Rs 11,723 crore recorded in the previous month. Given the sentiments in the market, large cap and multi cap fund categories attracted a maximum net inflows of Rs 1,691 crore and Rs 1,240 crore respectively,” says Himanshu Srivastava, Senior Analyst Manager Research, Morningstar Investment Adviser India.
The Systematic Investment Plan (SIP) Asset Under Management (AUMs) at Rs 2,75,982.88 crore as on April 2020 has risen by Rs 36,096.75 crore as compared to Rs 2,39,886.13 crore as on March 2020. ‘’It is heartening to note that despite subdued economic scenario, retail investors are seen to be continuing with their goal-based investment discipline, displaying mature investment conduct, as seen from month-on-month rise in retail AUMs, also a marked rise in the number of SIP accounts. Slowing redemptions in retail and overall mutual fund schemes is indicative of rising investor preference for mutual funds as a long-term wealth creation,” says NS Venkatesh, Chief Executive, AMFI.
Further, SIP contribution for April 2020 stood at Rs 8,376.11 crore as compared to Rs 8,641.20 crore on March 2020, down by 3 per cent. The total MF industry AUM rose 7.5 per cent to Rs. 23.93 lakh crore on April 2020 as compared to Rs 22.26 lakh crore in April 2019.