Equity mutual funds witnessed a staggering rise of 223 per cent in net inflows

According to the data released by AMFI, the net inflows in equity mutual funds increased by a whopping 223 per cent. Read on to find out more.

December 2022 was not so good for equity markets as the market barometer, S&P BSE Sensex sheds 3.58 per cent. Although the year gone by was topsy-turvy for the equity markets globally, Indian markets outperformed other prominent markets, returning around 4 per cent. However, still it failed to beat inflation, which is around 6 per cent. 

Despite this, domestic institutional investors (DIIs) were net buyers in the month of December 2022, buying shares worth Rs 14,692.33 crore. This was, in fact, more than they bought in collectively in the month of October and November 2022. This shows investment in mutual funds was optimistic in December 2022. 

According to the association of mutual funds in India (AMFI) data, in December 2022, the net inflows in equity mutual funds stood at Rs 7,303.39 crore as against Rs 2,258.35 in November 2022, clocking a growth of a whopping 223 per cent. However, on a Year-on-Year (YoY) basis, it witnessed a degrowth of 71 per cent. Having said that, in the same period, assets under management (AUM) surged by 14 per cent. Value and contra fund led the pack with net inflows rising 424 per cent on MoM and 96 per cent on YoY basis. This indicates that the value theme is here to stay. 

Debt mutual funds, on the other hand, witnessed a net outflow of Rs 21,946.73 crore in December 2022. However, on a YoY basis, the net outflow was relatively less. However, the AUM witnessed a drop on Month-on-Month (MoM) as well as on a YoY basis. Having said that, in December 2022, long-duration funds witnessed good momentum with inflows rising 93 per cent on MoM and stunning 4394 per cent on YoY basis. This can be attributed to the fact that the interest cycle has peaked and is less likely to head higher from here.

In the month gone by, the systematic investment plan (SIP) contribution saw an uptick. The December 2022 SIP contribution stood at Rs 13,573.08 crore as against Rs 13,306.49 crore in November 2022. Overall, despite a volatile year, the SIP contribution print was quite encouraging.