Inflows into Equity MFs Touch 12-Month High

“Be greedy when others are fearful” –Warren Buffett advised investors who want to make money consistently in the stock markets. The average Indian savers appear to have heeded the Oracle of Omaha’s advice despite unprecedented carnage on D-Street, remaining steadfast on their long-term goal of building wealth, SIP by SIP.

Collections through monthly systematic investment plans continued their upward trend and touched an all-time high of ₹8,641 crore, staying above the ₹8,000 crore mark for the 16th consecutive month. For the first time, SIP collections crossed the ₹1 lakh croremark in a financial year to touch ₹1,00,040 crore. And all this through a manic March, in which Nifty crashed nearly a quarter.

Aggregate inflows into equity mutual fund schemes climbed to ₹11,723 crore during the month, higher than February’s ₹10,796 crore. These inflows are the highest in the past 12 months.

However, the average industry assets for March fell by ₹3.5 lakh crore to ₹24.71 lakh crore, but the withdrawals were not from growth assets.

While liquid fund outflows were on account of the year-end and lockdown requirements, investors withdrew from arbitrage funds after spreads between cash and futures turned negative.

Large-cap funds, multi-cap funds and focused funds got a large chunk of flows that came into equities. Inflows into large caps rose to ₹2,060 crore, compared to ₹1,607 crore in the previous month. Focused funds saw inflows of ₹1,994 crore compared to ₹1,446 crore in the previous month.

Small-cap and mid-cap flows fell to ₹163 crore and ₹1,233 crore. Multi-cap funds that invest in a mix of large, mid and small cap stocks saw flows of ₹2,268 crore, compared to ₹1,625 crore in the previous month.

Balanced funds, banking and PSU debt funds, credit risk funds, and equity savings funds, and gilt funds were some categories that saw outflows in March.

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