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Despite weakness in the financial markets, the Indian mutual fund industry has seen a good start to the new financial year at it witnessed net inflows of ₹72,847 crore during the month of April, as per data released by the Association of Mutual Funds in India (Amfi) on Tuesday.
However, monthly systematic investment plan (SIP) contribution at ₹11,863.09 crores as on April 2022, stood ₹464.82 crore lower compared with March’s contribution at ₹12,327.91 crore, which was an all-time high.
The number of SIP accounts stood at an all-time high 5.39 crore in April crossing the March 2022 high of 5.27 crore. During the month, 11.29 lakh SIP accounts were added.
During the month, the equity category received a net inflow of ₹15,890 crore. Though it was lower than the net inflow of ₹28,464 crore in March, it’s a significant amount in absolute terms.
Overall, at ₹38.03 lakh crore, net assets under management (AUM) of the Indian mutual fund Industry as on 30 April, reported 17 per cent yearly growth. The mutual fund industry AUM stood at an all-time high.
The Amfi data also showed that the number of mutual fund folios rose 33% to an all-time high at 13.13 crore compared with 9.86 crores last year. The number of folios grew sequentially by 1% from 12.95 crore as on 31 March 2022.
In the debt or Income category, liquid fund, money market fund and ultra-short duration fund emerged as top three in the net flows. On the equity category, large & mid-cap, small-cap, flexi-cap, mid-Cap and multi-cap witnessed significant flows.
In the hybrid category, arbitrage and dynamic asset allocation schemes gained significant positive flows.
“Despite volatility in markets and fear around macros both globally and locally, it is good trend to see continues positive flows in equities. Though lower than last month which may be due to NFO allotment, SIP flows are holding strong which is also very positive. It will be interesting to see ongoing investment trends given the intensity of volatility being very high, I do expect positive trend to continue going forward though," said Akhil Chaturvedi, chief business officer, Motilal Oswal AMC.
As on April, the new flows for debt oriented schemes stood at ₹54,756.60 crore and for growth or equity oriented schemes net flows stood at INR 15,890.38 crore.
During April 2022, three different NFOs were launched under open-ended schemes category, mobilizing at ₹3,240 crore.
