Equity mutual fund inflows drop 22% in November; SIPs cross Rs 17,000 cr-mark

Equity mutual funds recorded a 22 per cent decline in fund inflows in November, as per data released by the Association of Mutual Funds of India (AMFI). The inflows dropped 22.15 per cent month-on-month to Rs 15,536 crore in November from Rs 19,957 crore in October, the data showed. This is the 33rd consecutive month of inflows on a net basis.

Mutual fund inflows in equity-oriented schemes were at Rs 1.45 lakh crore, so far this year, propelling the benchmark indexes Nifty 50, BSE Sensex as well as the more domestically focussed small- and mid-caps to fresh all-time highs.

The benchmark Nifty 50 gained 5.52 per cent in November, its best month since July 2022, aided by favourable liquidity conditions, easing global rate concerns and strong macroeconomic data.

"Diwali festivities and bank holidays probably affected equity net flows in November," said Manish Mehta, head of sales, marketing and digital business at Kotak Mutual Fund. 

Small-cap funds saw substantial inflows of Rs 3,699.24 crore, slightly less than the Rs 4,495.13 crore recorded in October. The mid-cap category secured the second-highest inflow at Rs 2,665.73 crore. 

In terms of systematic investment plans (SIPs), the contributions soared to a historic high of Rs 17,073.30 crore in November, as per AMFI data. The number of SIP accounts rose by 1.41 million to 74.41 million, which is also an all-time high. In October, it was recorded at Rs 16,928 crore.

The ELSS category saw its lowest inflow for the month at Rs 104.40 crore, which was more than double ar Rs 266.35 crore in October.

Debt mutual funds saw significant outflows and was around Rs 4,706.75 crore as compared to Rs 42,633.70 crore in October. 

Every hybrid category saw positive inflows during November. Inflows in hybrid funds categories experienced a substantial 37 per cent surge, totaling Rs 13,538.05 crore compared to October's Rs 9,906.86 crore.

The SIP assets under management (AUM) also witnessed a substantial uptick, scaling to Rs 9.31 lakh crore for November, as compared to Rs 8.59 lakh crore in October.

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