Equity mutual fund inflows drop 22% in November, debt schemes see outflows

Equity mutual fund inflows dropped around 22.16% in November 2023, as reported by the Association of Mutual Funds in India (AMFI). The segment recorded ₹15,514.5 crore inflows in the month versus ₹19,932 crore in October.

The small-cap fund inflow declined to ₹3,699 crore as against ₹4,495 crore in October. The midcap fund inflow edged higher to ₹2,666 crore in November versus ₹2,409 crore, the data showed. Large-cap fund inflows scaled down to ₹307 crore, a considerable drop from the ₹724 crore observed in October.

Equity Linked Savings Scheme (ELSS) inflows also experienced a decline to ₹104.4 crore from ₹266 crore recorded in October.

The total debt scheme outflow amounted to ₹4,706.7 crore, diverging significantly from the ₹42,634 crore inflow reported in the prior month. Liquid fund outflows amounted to ₹644.7 crore in November, diverging sharply from the ₹32,964 crore inflow observed in October.

 

Additionally, credit risk funds witnessed an outflow of ₹253.7 crore, contrasting the ₹142 crore outflow recorded in October. The corporate bond fund segment witnessed an outflow of ₹1,578.4 crore, deviating from the ₹1,940 crore inflow registered in October.

In contrast, hybrid fund inflows surged to ₹13,538 crore, demonstrating a significant increase from the ₹9,907 crore recorded the previous month.

Exchange-Traded Fund (ETF) inflows underwent a substantial change, standing at ₹833.62 crore in November, compared to ₹4,769 crore in October.

Overall, the total assets under management stood at ₹49.04 lakh crore versus ₹46.71 lakh crore (MoM).

In terms of systematic investment plans (SIPs), the number topped the ₹17,000 crore level for the first time in November. During the month, the SIP book stood at ₹17,073 crore against ₹16,928 crore in October.

Commenting on the same, NS Venkatesh, CEO at AMFI, said, “As we approach the end of another year, it’s time to celebrate the positive growth and success of the Mutual Fund Industry. The AUM has been increasing steadily, reflecting the growing trust and confidence of investors. We believe this trend will continue through December as well and the numbers will continue to remain positive."

Notably, the Indian stock markets noticed an upturn in November 2023. The Nifty 50 index marked a 6% upswing. Of particular note, the Smallcap 250 index emerged as the frontrunner with 10% growth.

According to data analysed by brokerage firm Motilal Oswal, the Nifty Smallcap 250 index surged by 10.22% in November 2023.