Thanks to SEBI’s crackdown on small caps, inflow into equity mutual funds slipped 16 per cent in March, AMFI data

Thanks to the Sebi’s crackdown on mutual fund houses with regards to their investment in small cap schemes, total equity inflow into mutual funds in March 2024 saw a decline in March 2024 vis-à-vis February 2024.

Inflow into equity mutual funds declined 16 per cent from ₹26,866 crore to ₹22,633 crore in the month of March.

It is interesting to note that mutual fund inflow was positive in all categories such as mid cap, large cap and multi cap, but small caps saw an outflow in March.

In fact, large caps saw a spike of 131 percent, while other equity categories saw a decline (although they remained in positive).

(Source: AMFI)

“Markets are robust and the overall interest in equity is generally good, but if it were not for small cap funds, inflow into equity funds would have seen a rise,” says Ravi Saraogi, Co-founder of Samasthiti Advisors.

Debt mutual funds saw redemption to the tune of ₹1.98 lakh crore in the March against an inflow of ₹63,808.8 in the preceding month.

Inflow into hybrid schemes saw a substantial decline from ₹18,105 crore to ₹5,583 crore. Mutual fund investors’ inflow to retirement funds rose from ₹116 crore to ₹132 crore in March.

ALSO READ: Smallcap funds see outflow for first time in 2.5 years

Likewise, inflow to children's funds rose from ₹66.7 crore to ₹74 crore.

Other mutual funds

Inflow into index funds declined to ₹1,822 crore against ₹2,536 crore in February. Also, inflow to gold ETFs declined to ₹373 crore against ₹997 crore in preceding month.

And inflow to other ETFs rose 63 percent to ₹10,559 crore against ₹6,461 crore in February. 

“The investor confidence in mutual funds continues as the fiscal year draws to a close. This is reflected by the SIP accounts hitting a record high of 8,39,71,299 with 42,87,117 new registrations. The SIP AUM stands at ₹10,71,665.63 crores, surpassing February's figures. This underscores investors' unwavering commitment to disciplined wealth accumulation,” said Venkat Chalasani, Chief Executive, AMFI said.