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Inflows into equity schemes of mutual funds plunged 78 per cent to a 41-month low in November to ₹1,312 crore against the ₹6,026 crore logged in October, despite the markets hitting a new high.
Among equity schemes, multi-cap funds logged the biggest fall of 86 per cent to ₹181 crore from ₹1,312 crore, while mid-cap funds plummeted 26 per cent to ₹802 crore (₹1,091 crore), according to data released by the Association of Mutual Funds in India.
Large- and mid-cap funds saw an outflow of ₹252 crore against inflows of ₹510 crore in October, while sector-specific investments witnessed an outflow of ₹637 crore against inflows of ₹447 crore registered in October. Outflows from the value and contra fund deepened to ₹956 crore from ₹229 crore logged in October.
Exit load takes a toll
Inflows into debt-oriented schemes also slowed down sharply, by 58 per cent, to ₹51,428 crore (₹1.21- lakh crore) as inflows into liquid funds plunged 92 per cent to ₹6,938 crore (₹93,203 crore) due to SEBI’s introduction of an exit load.
However, inflows into overnight funds improved to ₹20,649 crore (₹5,748 crore). Outflow from credit risk fund touched ₹1,899 crore (₹1,382 crore). The overall inflow into debit-oriented schemes dipped 59 per cent to ₹54,419 crore (₹1.33 lakh crore).
However, the assets under management of the mutual fund industry improved 3 per cent to ₹27.04-lakh crore in November from ₹26.32-lakh crore, largely due to steady inflows through systematic investment plans and the run-up in the equity market.
SIP inflows touched a new high of ₹8,273 crore (₹8,246 crore) last month. The SIP AUM touched an all-time high of ₹3.12-lakh crore (₹3.03-lakh crore).
NS Venkatesh, CEO, AMFI, said that with markets touching a new high, some high-net-worth investors booked profits, leading to a slowdown in equity flows.
Expecting these investors to reinvest at the current level, he said they should take a call on reinvesting soon as the markets are poised to touch new highs with expectations from the Union Budget building up and the impact of government reforms kicking in.
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