Retail inflow into equity funds fall 22% in November

The month of November has seen a 22% decrease in the funds flowing into equity-oriented mutual funds, according to data from the Association of Mutual Funds of India (AMFI), the mutual fund industry's trade body.

Equity funds registered investments totaling ₹15,536.42 crore, marking a decrease of about 22.15% from the ₹19,957.17 crore recorded in October. It is important to note that equity inflows in October registered a substantial 44% month-on-month rise from Rs 14,091 crore.

The total assets under management (AUM) for equity funds stood at ₹49 lakh crore in November, up from ₹47.8 lakh crore in October. Meanwhile AUM of equity funds were at an all time high of ₹20.3 lakh crore.

It's interesting how despite foreign investors exercising caution, the domestic retail investors have taken the lead in boosting capital inflows into equity-oriented schemes in India. This demonstrates a certain level of confidence and participation from within the country's investor base.

The significant amount of ₹124,053 crore invested in the first nine months of 2023 indicates a strong interest and belief in the potential of the equity market among domestic investors.

Month	Inflow into equity funds
January-23	₹12,546.51 crore
February-23	₹15,685 crore
March-23	₹20,534 crore
April-23	₹6480 crore
May-23	₹2,906 crore
June-23	₹8,637 crore
July-23	₹7,505 crore
August-23	₹20,133 crore
September-23	₹14,091 crore
October-23	₹19,932 crore
November-23	₹15,536 crore

Investments in systematic investment plans (SIPs) reached record levels, going past ₹17,000 crore for the first time.

“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,” says G. Pradeepkumar, CEO, Union Asset Management Company.

Inflows into small cap and mid-cap funds remained strong. White inflows into small cap funds fell from ₹4,495 crore in October to ₹3,699 crore in November, flows into mid-cap funds went up from ₹2,409 crore in October to ₹2,666c crore in November. Inflow into ELSS funds fell sharply from ₹266 crore in October to ₹104.4 crore in November.

Sectoral funds which had seen an inflow of ₹3,895.72 in October, saw an inflow of ₹1,964 crore in November.

The total outflow into debt schemes reached ₹4,706.7 crore, marking compared to ₹42,634 crore. Last month,. Similarly, liquid funds experienced an outflow of ₹644.7 crore in November, in contrast to an inflow of ₹32,964 crore seen in October.