Net inflows for equity MFs in second consecutive month

As the second wave of Coronavirus gripped India and with the equity market becoming a lot more volatile, investors seem to be returning to equity mutual funds. Equity mutual funds, which witnessed around eight consecutive months of net outflow, recorded the first inflow in eight months in March 2021. However, this could have been due to the change in the net asset value (NAV) norms wherein, units would only get allocated once the amount is realised at the asset management company’s (AMC) end. However, according to the data released by the Association of Mutual Funds in India (AMFI), April 2021 marks the second successive month of net inflows for open-ended equity funds, registering inflows of Rs 3,437 crore. However, the net inflows in April 2021 fell from Rs 9,115 crore registered in March 2021.

Even though the net inflows of equity funds dropped over March 2021, large-cap, mid-cap & small-cap funds saw net inflows of Rs 325 crore, Rs 958 crore, and Rs 184 crore, respectively for the second consecutive month. Having said that, multi-cap funds witnessed negative net inflows of Rs 192 crore and Rs 158 crore in March 2021 & April 2021, respectively. It seems that investors are moving out from multi-cap funds. 

SIP contribution 

The contribution towards systematic investment plans (SIP) remained optimistic in April 2021 as well. The SIP contributions in April 2021 stood at Rs 8,591 crore as compared to Rs 9,182 crore inflows in March 2021.