Inflows into equity mutual funds were down 14 per cent at ₹35,943 crore last month compared to ₹41,887 crore in October as investors toned down their expectations with the sudden dip in the market.
SIP inflows were also down marginally at ₹Rs 25,320 crore last month against ₹25,323 crore. Equity markets have been very volatile, with foreign investors pulling out funds.
Thematic and flexi cap funds received the highest inflow of ₹7,658 crore and ₹5,084 crore, though it was lower compared to the previous month’s inflow of ₹R12,279 crore and ₹5,180 crore in these funds.
Three thematic new fund offers mopped up ₹2,751 crore, leading to an overall inflow of ₹4,052 crore through NFOs.
Venkat Chalasani, CEO, Association of Mutual Funds in India said investors are using every dip in the market to pump in more money as they have understood that mutual funds are the best route to tap the equity market.
On the mutual funds’ rush to launch thematic fund NFO, he said investors should be aware of the risks involved in these schemes. The markets will remain volatile in the coming days, and they are not going to move smoothly upward.
However, he said the long-term growth story of the Indian economy remains intact.
Inflows into hybrid funds also moderated to ₹4,123 crore against ₹16,863 crore logged in October. Overall assets under management of the industry were up at ₹68.08 lakh crore against ₹Rs 65.25 lakh crore logged in the previous month.
