Equity mutual fund inflows in November 2024 stood at ₹35,927.3 crore, reflecting a 14% month-on-month (MoM) decline compared to ₹41,865.4 crore in October. Data from the Association of Mutual Funds in India (AMFI) highlights shifting investor sentiment influenced by market volatility and economic events.
Key Highlights
- Large-Cap Fund Inflows:
Dropped by 26.3% to ₹2,547.9 crore, down from ₹3,452.3 crore in October. - Small-Cap Fund Inflows:
Increased by 9.0% to ₹4,112 crore, up from ₹3,772 crore in October. - Mid-Cap Fund Inflows:
Grew by 4.3% to ₹4,883.4 crore, compared to ₹4,683 crore in October. - SIPs (Systematic Investment Plans):
SIP contributions slightly declined to ₹25,320 crore in November, compared to ₹25,323 crore in October.
Performance by Fund Categories
- Equity-Linked Savings Schemes (ELSS):
Inflows rose to ₹618.5 crore in November, up from ₹362 crore in October. - Sectoral and Thematic Funds:
Inflows dropped by 37%, from ₹12,278.8 crore in October to ₹7,658 crore in November. - New Fund Offerings (NFOs):
Inflows declined to ₹4,052 crore, compared to ₹6,078 crore in October. - Exchange-Traded Funds (ETFs):
Notable decrease in inflows from ₹13,441.8 crore in October to ₹1,531.2 crore in November.
Market Impact and Investor Behavior
The decline in equity inflows is attributed to several factors:
- Market Volatility:
- Subdued performance of Sensex (-0.27%) and Nifty (-0.31%) in November.
- Ongoing political events, such as India’s general elections and the U.S. elections.
- Shifting Preferences:
- Increased investor confidence in small-cap and mid-cap funds despite market corrections.
- Large-cap funds underperformed due to valuation concerns.
- SIP Trends:
- Higher discontinuation rates for SIPs initiated through technology-driven apps.
- Regular SIPs, supported by human advisors, exhibited resilience.
Expert Insights
Feroze Azeez, Deputy CEO, Anand Rathi Wealth Limited:
“The decline in SIP registrations reflects the impact of market volatility. However, sustained retail investments in small-cap funds underscore investor confidence in India’s long-term growth story.”
Deepak Ramaraju, Senior Fund Manager, Shriram AMC:
“Thematic funds witnessed a sharp decline, while ELSS funds surged by 61%. The market correction and political uncertainties led to cautious investor sentiment.”
Himanshu Srivastava, Morningstar India:
“Gold ETFs recorded ₹1,257 crore net inflows in November, driven by profit-booking and seasonal demand for physical gold during the wedding season.”
Outlook
While November’s decline in equity mutual fund inflows reflects caution among investors, the sustained contributions to SIPs and the growth of small- and mid-cap funds demonstrate strong confidence in India’s economic prospects. The upcoming months will hinge on market stability, economic clarity, and evolving investor strategies.
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