Despite the volatility and weakness induced by geo-political tensions, inflation, rate hike and other factors, the Indian mutual fund industry witnessed a net inflow of Rs 72,847 crore during the month of April 2022. The number of systematic investment plan (SIP) accounts were at an all-time high of 53.9 million in April 2022. In March, this figure was 52.7 million. During the month, 1.129 million SIP accounts were added, according to data released by the Association of Mutual Funds (Amfi) on May 10.
Equity investments, however, saw a net inflow of Rs 15,890 crore, and it was lower by Rs 12,574 crore from the March 2022 figure of Rs 28,464 crore. This is quite a significant low net inflow for the month of April in equity schemes.
Amfi CEO NS Venkatesh said in the press conference that due to the fewer number of days in April, the mutual fund investment aggregate collections were lower. Nevertheless, he expected that for the month of May 2022, there could be improvement.
The total net assets under management (AUM) of the Indian mutual fund industry as of April 30, 2022 stood at Rs 38.03 lakh crore, and on a year-on-year basis, it represented a growth of 17 per cent, he said, citing Amfi data.
What Is The Retail Investing Trend?
Retail investing trend is mostly measured by the number of active SIP accounts and the amount of SIP investments. The monthly SIP contribution stood at Rs 11,863.09 crore on April 30, 2022. In March 2022, this figure was Rs 12,327.91 crore. This means that the SIP collection figure for April was lower by Rs 464.82 crore when directly compared with March 2022.
The Amfi monthly data also showed that the total number of mutual fund folios rose by 33 per cent to reach an all-time high of 131.3 million. The number of folios as of March 31, 2022 was 129.5 million; so this represents a growth of almost 1 per cent in the number of mutual fund folios.
What Is The Impact On Different Funds?
During the month of April 2022, a total of three different new fund offers (NFO) were launched under the open-ended category. Collectively, they have raised Rs 3,240 crore from investors.
There was a new inflow for debt-oriented mutual fund schemes at Rs 54,756.6 crore. For equity-oriented schemes, there was also a net inflow at Rs 15,890.38 crore.
“Despite volatility in markets and the fear around macros, both globally and locally, it is a good trend to see continued positive flows in equities. Though lower than last month, which may be due to NFO allotment, SIP flows are holding strong, which is also very positive. It will be interesting to see ongoing investment trends, given the intensity of volatility being very high. I do expect positive trends to continue going forward though,” said Akhil Chaturvedi, chief business officer, Motilal Oswal Asset Management Company in a press release.