BackEquity mutual fund inflows fall in September 2023, SIP contributions hit new high: AMFI data
In the debt funds category, outflows surged significantly. Smallcap fund inflows stood at ₹2,678 crore. Midcap funds stood at ₹2,001 crore
PremiumThe equity mutual funds slipped in September according to the data released by the Association of Mutual Funds in India (AMFI) on Wednesday. Midcap and small-cap mutual funds continue to see inflows while large-cap funds witnessed outflows, the data showed. Inflows into equity mutual funds fell 30.4% sequentially in September 2023, the data showed.
“The Mutual Fund industry crossing the 4 crore unique investors mark is a testament to Indian retail investors’ participation in equity markets through the Mutual Fund route. This is further demonstrated by the SIP contribution of ₹ 16,042.06 crores in September 2023 which is the highest to date and the stellar growth of 21% in overall AUM," said NS Venkatesh, CEO, of AMFI.
“Equity-oriented funds continued to witness net inflows in September, marking the 31st consecutive month of net inflows. The segment witnessed net inflows of ₹14,091.2 crores in September 2023 lower than what it witnessed in the previous month ( ₹20,245.26 crore). The equity segment was also aided by 6 new fund launches in September which garnered INR 2,503 crore," said Melvyn Santarita, Analyst – Manager Research, Morningstar Investment Adviser India.
Among the equity asset class, the sectoral/thematic funds saw the highest inflows to the tune of ₹3,146.8 crore during the month. “The spike in the flows of this category could also be attributed to the fact that there were 4 new fund launches in this category which cumulatively garnered Rs1,629 crore during the month of September. In August 2023 too, this category saw the highest flows ( ₹4,805.81 crores aided by 5 new fund launches)," said Melvyn Santarita
In the debt funds category, outflows surged significantly. Smallcap fund inflows stood at ₹2,678 crore. Midcap funds stood at ₹2,001 crore. Meanwhile, the Systematic Investment Plan (SIP) inflows stood at ₹16,402 crore. As per AMFI data, the cumulative Asset Under Management (AUM) for the mutual fund industry stood at ₹46.58 lakh crore as of September 30.
The quantum of net flows in both the small-cap and the midcap as a category saw a dip compared to the previous months. As per Melvyn, the dip in the net flows of these categories could be attributed to some bit of profit booking by investors coupled with concerns regarding inflated valuations in some of these segments.
Investors preferred small- and mid-cap funds over large-caps in hopes of strong returns, data from AMFI showed.
Mutual Funds: AMFI data for September 2023
Multi Cap Fund- Net inflow of ₹2,234.52 crore.
Large-cap fund -Net ouflow of Rs110.60 crore
Large and Mid cap fund- Net inflow of ₹1,334.19 crore
Mid-cap fund -Net inflow of ₹2,000.88 crore
Small cap fund- Net inflow of ₹2,678.47 crore
Focussed fund- Net inflow of ₹48.94 crore
ELSS- Net inflow of ₹141.15 crore
Flexi cap Fund- Net inflow of ₹1,353.51 crore
While overall net flows experienced a dip in various categories, it's noteworthy that thematic/sectoral funds extended their positive trend into the current month, attracting the highest net inflows. "Hybrid funds experienced an uptick in net inflows on a month-on-month basis. This trend reflects the prevalent risk-off sentiment in the market, with investors seeking to diversify their investments while maintaining a focus on capital protection," said Akhil Chaturvedi, Chief Business Officer, Motilal Oswal Asset Management Company.
So far in 2023, the small-cap index has risen 32.54%, while mid-caps have jumped 29%, compared with a 9.3% gain in Nifty 50.
Mutual fund SIPs touch record high in August 2023
Investors poured in a record ₹15,813 crore in August through the systematic investment plans (SIPs) route offered by mutual fund players. The overall AUM for retail investors' bets on equity and hybrid schemes was at ₹24.38 lakh crore across 12.30 crore portfolios as of the end of August.
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