Net inflows of equity mutual funds more than double!
The monthly numbers issued by AMFI show that equity mutual fund inflows more than doubled in December 2021. Continue reading to learn more.
Markets (Nifty 50) last reached 18,000 on November 15, 2021, and since then, markets have had lower tops and lower bottoms. However, the markets are now resisting near 18,000 levels, and a break of this level will further determine the market's path. Having said that, equity mutual funds are attracting a lot of attention, as seen by the Association of Mutual Funds in India's (AMFI) inflows data.
Equity mutual fund inflows more than doubled to Rs 25,077 crore in December 2021, up from Rs 11,615 crore the previous month, according to AMFI’s monthly data. In the same month last year, the net inflows of equity mutual funds were minus Rs 10,147 crore. In reality, the net inflows into equity mutual funds were negative from July 2020 to February 2021. Furthermore, the net inflows recorded in December 2021 are the biggest since April 2018.
If we go further and look at the inflows by category, the multi-cap class had the biggest inflows among the others. Multi-cap inflows increased from Rs 348 crore in November 2021 to a whopping Rs 10,516 crore in December 2021. This increase might be attributable to the New Fund Offers (NFO), which raised around Rs 9,509 crore.
As a result, the continuous increase to net inflows by equity mutual funds (excluding funds mobilized through NFOs) was Rs 12,631 crore in December 2021, compared to Rs 11,137 crore in November 2021. Hence, we might conclude that investors were more interested in NFOs than their available counterparts.
SIP Contribution
The Systematic Investment Plan (SIP) accounts stood at 4.91 crore as on December 2021 as compared to 4.78 crore accounts in November 2021.
Monthly payments towards SIP increased for the eighth consecutive month making a new high of Rs 11,305 crore, according to the AMFI. In the month of December 2021, around 12.55 lakh SIP accounts were added.