Equity mutual funds see shift in inflows, SIPs hit record high

09-May-24   14:54 Hrs IST
Equity mutual fund inflows experienced a 16.4% decline in April 2024, reaching Rs 18,917 crore. This decrease is attributed to a significant drop in investments directed towards large-cap funds. However, a positive shift emerged in small-cap funds, which attracted inflows of Rs 2,208 crore after facing outflows in March.

Systematic Investment Plans (SIPs) offered a bright spot, with record-breaking contributions of Rs 20,371 crore in April. This surpasses the Rs 20,000 crore mark for the first time, indicating continued investor interest in utilizing SIPs for long-term wealth creation.

Overall, the mutual fund industry displayed a strong rebound following outflows experienced in March. Net inflows reached Rs 2.39 lakh crore, driven by positive inflows across various categories.

Within the equity fund segment, large-cap inflows witnessed a substantial decline of 83%, settling at Rs 358 crore. Conversely, mid-cap funds experienced a significant surge of 76.19%, reaching net investments of Rs 1,793 crore. Sectoral and thematic funds received the highest inflows (Rs 5,166 crore) but saw a decrease of 34.75% compared to the previous month. Focused funds and Equity Linked Savings Schemes (ELSS) categories also experienced net outflows.

Debt funds, which faced outflows in March, exhibited a recovery with net inflows of Rs 1.90 lakh crore in April. Liquid funds and Money Market funds were the primary contributors to this positive shift.

Fueled by the fresh inflows in both debt and equity funds, the Assets Under Management (AUM) of the mutual fund industry climbed to Rs 57.26 lakh crore at the end of April 2024.

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