Equity mutual fund inflows more than triple in Dec
Inflows into Indian equity mutual funds more than tripled to 73.03 billion rupees in December 2022 from the previous month, data from the Association of Mutual Funds in India showed....
GRAPHIC: Net equity inflows more than triple MoM in December - URL.png The inflows came despite the broader indexes, NSE Nifty 50 and S&P BSE Sensex, seeing a selloff to the tune of nearly 4% in December. "The recovery in equity mutual fund inflows is a vindication that equities will be the preferred asset class for mutual fund investors," said N.S. Venkatesh, chief executive officer of AMFI.
Inflows had tanked nearly 76% in November to 22.58 billion Indian rupees, hitting a 21-month low. Small-cap funds accounted for most of the investments at 22.45 billion rupees. Large-cap funds saw outflows falling to 0.26 billion rupees, compared to outflows of 10.39 billion rupees in the previous month.
GRAPHIC: Segment-wise trends - URL.png "Domestic investors latched on to small-cap equity funds as the segment became attractive due to recent correction, from an entry point of view," said Venkatesh. Contributions to systematic investment plans (SIPs) - where investors make periodic, equal payments into a mutual fund - rose for the fifth consecutive month to a record 135.73 billion Indian rupees ($1.65 billion) in December, data showed. GRAPHIC: SIP contribution rises to record high for fifth month - URL.png Liquid funds - funds that mature in 91 days - saw outflows of 138.52 billion rupees, according to AMFI.
GRAPHIC: Liquid funds witness outflows in December - URL.png "It's natural to see outflows from liquid funds at the end of a year, as corporates use the funds to pay advance tax for the year," Venkatesh said. GRAPHIC: Credit risk funds see outflows for second month in a row - URL.png The mutual fund industry logged a total net inflow of 44.91 billion rupees, down 66% from 132.64 billion rupees in November, dragged largely by liquid fund outflows, AMFI data showed. The average assets under management rose nearly 1% to 40.8 trillion rupees from 40.5 trillion rupees in November.
GRAPHIC: Net flows into Mutual Funds fall to three-month low - URL.png ($1 = 82.1725 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman) By Bharath Rajeswaran